FACTS: Worldwide LNG demand up 8.8% in first half
Global demand for LNG has risen 8% during the first 6 months of 2007 vs. the same period in 2006, according to FACTS Global Energy.
Christopher E. Smith
HOUSTON, Oct. 26 -- Global demand for LNG has risen 8% during the first 6 months of 2007 vs. the same period in 2006, according to FACTS Global Energy. Initial estimates by the Honolulu-based firm place the world's demand for LNG during this year's first half at 86 million tonnes, an increase of 6.3 million tonnes from the same period in 2006.
Even-stronger second-quarter growth of 8.8% was paced by increases in Asian and US demand, according to FACTS. Deliveries to the Asia-Pacific region increased 10.5% in the second quarter, reaching 55 million tonnes by the end of June. The largest percentage gainer in the region was China, which saw its imports increase to 1 million tonnes, from 100,000 tonnes just a year earlier.
At the same time, European demand dropped nearly 12%, with higher prices in the US pulling Atlantic Basin cargoes in that direction instead. FACTS said US demand hit a record of 9.6 million tonnes in this year's first half, a 64.1% increase from the first half of 2006.
The drop in European demand helped to relax supply tensions in the first half, according to FACTS, which also noted that numerous liquefaction plants continued to operate below nameplate capacity.
FACTS went on to say that the LNG market should remain relatively relaxed for the balance of 2007, absent "exceptionally cold winter."
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