Liquefied Natural Gas (LNG): A 2017 Overview and 2018 Outlook

LNG production in 2017 jumped to a record high of 290m tonnes, up by 12 percent from 2016.
The increase in LNG production in 2017 was mainly driven by the rapid growth of LNG production from both; Australia and the United States.
In 2017, Australia and the United States contributed an additional of 22m tonnes combined, according to the LNG Edge.
LNG production from Qatar, the largest LNG producer, was the almost the same for both 2016 and 2017. No LNG production growth recorded.
LNG production from Malaysia, Angola, Nigeria and Algeria slightly grew in 2017 with more consistency in supply.
Among the top LNG producers, Indonesia saw its LNG production decline in 2017.
Driven by its shale gas drilling boom, U.S. become the seventh largest LNG exporter globally.
As the LNG supply share war intensifies, Australia’s supply share in East Asia grew by 3 percent in 2017 from 25% to 28%, while Qatar, the largest LNG producer, saw its supply share in the same region decline from 22 percent in 2016 to 20 percent in 2017.

LNG Production in 2017

New LNG production volumes was absorbed largely by East Asia.
In 2017, China absorbed around 40 percent of the new LNG production making the country the second largest LNG buyer.
As the Chinese government pushes towards gas and away from coal, China’s LNG imports in 2017 increased by 12m tonnes to reach 28.4m tonnes.
When it comes to LNG imports, the four big East Asia buyers; China, Japan, South Korea and Taiwan absorbed almost 61 percent of the global LNG production.

LNG Imports

LNG production to exceed 300m tonnes in 2018, with production coming mainly from Australia and the US.
A growing competition for LNG supply share between Qatar, Australia and USA to intensify.
United States to lead the growth in LNG production in 2018.
Qatar to face a competition for its LNG exports from Australia in East Asia, and In Europe from USA and Russia.
Qatar is expected to boost its LNG exports to Pakistan and start exporting LNG to Bangladesh.
Australia to continue to grow its supply share in the East Asia.
Qatar to aggressively boost LNG exports as part of its plans to enhancing its LNG production by 30% to 100mn tonnes per annum (Mta).
Demand for LNG in East Asia to continue rising as countries move away from coal.