Global supply of liquefied natural gas (LNG) is set to grow by 80 per cent until the end of the century as investment gradually shifts from oil to the gas sector, investment bank Goldman Sachs has said.
The investment bank's research department said that US LNG will dominate future supply globally, while lowering LNG prices in Europe and Asia. The research department went on to state that this would end the energy crisis that emerged after the Russia-Ukraine conflict in 2022.
‘We expect global LNG supply to increase by 80 per cent by 2030, driven by new projects in North America and Qatar.’
The research department noted that growing global LNG demand is urging the US to boost local supplies. They expect this growth to expand rapidly over the next two to three years, with shale gas production expected to increase by 54 per cent by 2029.
Goldman Sachs said this will lead to a cost advantage, with costs expected to flatten further.
‘This has become a key driver of LNG exports, making the US the world's largest energy exporter and Europe's largest supplier of LNG.’
Given that US LNG export capacity is set to double over the next three to four years, Goldman Sachs Research said it was ‘questionable’ how many new projects would go ahead in the future if energy prices started to fall.
‘We expect downward pressure on prices because it's pretty staggering that U.S. energy production will double just from the projects already under construction.’
Goldman Sachs' research arm said the oil and gas industry is undergoing a “major transformation” as it prepares to deal with a prolonged decline in oil demand and rising global demand for natural gas. While oil investment growth in non-OPEC countries is already showing signs of peaking, investment in LNG is expected to grow by more than 50 per cent by 2029.
The sector says there are 73 significant projects under development globally in 2023, up more than 30 per cent from the beginning of this decade but 32 per cent less than a decade ago.
The report concludes that the global gas market will grow by 50 per cent over the next five years.
https://www.cnss.com.cn/html/hygc/20240603/353552.html
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