The LNG market will slow down in 2022. In 2023-2025, the demand was slower than in the previous decade
LNG will flow in large flow from new terminals and new ships after 2025. Global gas consumption is expected to slightly decrease in 2022. World gas consumption will grow slower than in the last decade. In the next three years, the demand dynamics will be lower – it corrects the previous EIA forecasts in the latest report.
2022 will be a breakthrough year in LNG trade. Due to Russia’s attack on Ukraine and the reorientation of land and sea gas supply routes, as well as the economic slowdown of leading economies. After 2021, it will be another year of radical changes on the global gas trade map.
Until 2025, the demand for natural gas will grow by 0.8% on average. This year there will be a significant slowdown in gas demand, corrects the forecasts of the previous EIA report. Experts from this agency explain that four-fifths of the falling demand will be caused by slowdowns in the economic activity of the leading economies. High gas prices will delay the transition from coal and oil-based energy generation.
The analysis of the forecasts of EIA, BP and other players is not optimistic about 2022. However, it can be expected that the LNG trade market will stabilize already in spring 2023. This will result in a slower pace of growth in gas demand, an economic slowdown and the introduction of new LNG and LPG tankers for sea transport. Since today charter contracts are concluded for longer periods, it can also be assumed that next year freight prices will fall by up to a third.
Photo: PGNiG; More: Grzybowski LNG, LPG Market 2022-2025