CHEVRON: LNG SHORTAGE - 2025
REUTERS - Chevron Corp said on Tuesday it expected supply shortage in the global liquefied natural gas (LNG) market by around 2025, echoing comments made last month by top LNG trader Royal Dutch Shell.
Demand for natural gas, which burns cleaner than coal and oil, has surged as countries such as China look to curb environmental pollution.
Chevron, owner of the giant Gorgon and Wheatstone LNG projects in Australia, said it expects global demand to be nearly 600 million metric tonne per annum (mmtpa) by 2035, while supply could be just about half of that.
"China's demand is increasing significantly - they've had a very active program to move off of coal in heating industrial applications, and that's pulled on LNG," Pierre Breber, EVP -downstream at Chevron, said during the company's analyst day, when asked about spot LNG prices.
China imported record levels of LNG in January, as the world's second-largest economy shored up supplies ahead of the Lunar New Year celebrations.
Shell in February estimated that more than $200 billion of investments in LNG is needed to meet the boom in demand by 2030.
The global LNG market is set to continue its rapid expansion into 2020 as facilities approved for construction in the first half of the decade come on line.
However, a decline in spending in the sector since 2014 will create a supply gap from the mid-2020s unless new investments emerge, Shell said in its 2018 LNG Outlook.
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BLOOMBERG - While Europe as a whole gets more than a third of its gas from Russia, that share is lower in the U.K., which receives the bulk of its fuel from North Sea fields and Norway. Still, Moscow-based Gazprom PJSC was the second-biggest supplier to major industrial consumers in the U.K. last year, according to Britain’s energy regulator Ofgem.
FT - of the six LNG tankers that have made deliveries into the UK so far in 2018 three have carried cargoes originally from Russia, leading to questions about whether Moscow was gaining a foothold in the UK gas market after starting up the Yamal LNG facility in Siberia late last year.
REUTERS - So far this year, two Yamal cargoes unloaded at British terminals for domestic consumption, accounting for about a third of Britain’s 2018 LNG imports after typical supplier Qatar pre-sold the bulk of its winter output to Asia last year.
REUTERS - U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $60.77 a barrel at 0753 GMT, up 6 cents, or 0.1 percent, from their previous settlement. Brent crude futures LCOc1 were at $64.62 per barrel, down just 2 cents from their last close.