• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 2 hours Iran Is Winning Big In The Middle East
  • 48 mins China has invested btw $30 - $40 Billon in Canadian Oil Sands. Trump should put 10% tariffs on all Chinese oil exported into or thru U.S. in which Chinese companies have invested .
  • 6 hours Tit For Tat: China Strikes Back In Trade Dispute With U.S. With New Tariffs
  • 13 hours Trump cancels Denmark visit amid spat over sale of Greenland
  • 26 mins Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 17 mins Strong, the Strongest: Audi To Join Mercedes, BMW Development Alliance
  • 22 hours US to Drown the World in Oil
  • 4 hours Not The Onion: Vivienne Westwood Says Greta Thunberg Should Run the World
  • 3 hours IS ANOTHER MIDDLE EAST WAR REQUIRED TO BOLSTER THE OIL PRICE
  • 12 hours OPEC will consider all options. What options do they have ?
  • 1 day Nor Chicago, nor Detroit: Killings By Police Divide Rio De Janeiro Weary Of Crime
  • 1 day Gretta Thunbergs zero carbon voyage carbon foot print of carbon fibre manufacture
  • 20 hours Long Range Attack On Saudi Oil Field Ends War On Yemen
Washington Threatens Greece In Tanker Seizure Saga

Washington Threatens Greece In Tanker Seizure Saga

Washington has asked Greece not…

Asian LNG Glut Stronger Than China’s Robust Demand Growth

gas storage

China is set to import massive amounts of LNG in 2019 as part of its determined push to switch away from coal and toward the lower emissions natural gas, but this robust demand is unlikely to curb the current inventory glut in Asia, according to Reuters, citing Fereidun Fesharaki, chairman of energy consultancy FGE.

While China’s LNG demand growth is set to increase by 14 percent in 2019 over 2018 levels—between 30 billion and 40 billion cubic meters—it’s lower than the 2018 demand growth of 18 percent, according to data from the National Development Reform Commission. This demand growth is also likely to be lower than supply, which has increased dramatically over the last year as Australia, United States, and Russia increase production.

New production for LNG this year is expected to surpass LNG demand by 2 percent, according to Reuters calculations. This lopsided equation is unlikely to improve LNG prices which have plummeted about 60 percent in the last six months alone.

On the demand side of the equation, these low LNG prices are still above pipeline gas prices, and as the new Russia pipeline comes onstream to carry gas to China, demand for LNG may falter, CNPC’s Ling told Reuters last week, although this is still many months away from completion.

The Russia to China pipeline, dubbed the Power of Siberia, is expected to come online in December 2019.

China continues its effort to switch away from coal, with an eye on lowering coal’s percentage of its energy mix to 35 percent in 2040 to 60 percent in 2017, according to BP estimates as published in the BP Energy Outlook 2019. China’s domestic natural gas production has so far been unable to ramp up as quickly as they would like, leaving imports to fill the gaps on the road to reduced coal consumption.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play