Oil giants Shell say they weren’t surprised to see a significant uptake in the use of liquefied natural gas (LNG) across the globe in 2017.
In Australia we have seen very little interest in making the switch away from diesel, that’s despite Australia having large reserves of the cleaner burning fuel.
In their latest LNG market update, Shell reported global demand for LNG grew by 29 million tonnes to 293 million tonnes last year.
Based on current demand projections, Shell sees potential for a supply shortage developing in mid-2020s, unless new LNG production project commitments are made soon.
“We are still seeing significant demand from traditional importers in Asia and Europe, but we are also seeing LNG provide flexible, reliable and cleaner energy supply for other countries around the world,” said Maarten Wetselaar, Integrated Gas and New Energies Director at Shell.
“In Asia alone, demand rose by 17 million tonnes. That’s nearly as much as Indonesia, the world’s fifth-largest LNG exporter, produced in 2017.”
The added demand brings a possible future supply issue.
Shell saying the mismatch in requirements between buyers and suppliers is growing, an issue that needs to be resolved to ensure there is enough future supply of this cleaner-burning fuel for the world economy.
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