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According to Royal Dutch Shell, the world could see a LNG shortage within a decade. Without more investment in new projects, heightened demand could swamp new supply. Tom DiChristopher reports at CNBC:
The Anglo-Dutch energy giant issued the warning in its second annual LNG outlook, which reports on developments in the booming market for natural gas cooled to liquid form for export. Shell says the market for LNG grew by 29 million tons last year, 30 percent more than previously expected.
Trading in LNG reached 293 million tons in 2017, up from just 100 million tons at the turn of the century. At nearly 300 million tons, suppliers shipped enough LNG last year to power about 575 million homes, by Shell’s count.
LNG is playing a growing role in the energy mix as nations around the world seek to mitigate the impacts of climate change. While natural gas is a carbon-emitting fossil fuel, it burns cleaner than coal and heating oil.
Shell’s report is good news for an industry that will see a huge amount of LNG capacity come online in the next few years, including from the United States, where five LNG export terminals are expected to start up by the end of 2019.
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