Rise in Global LNG Supply to Surge by 80% by 2030
In a groundbreaking analysis, it has been revealed that the global liquefied natural gas (LNG) supply is expected to skyrocket by a staggering 80 percent by the year 2030. This surge is being primarily driven by new projects in Qatar and North America, marking a significant shift in the energy landscape.
Goldman Sachs, a renowned financial services firm based in the US, stated in its latest report that this robust increase in supply is poised to bring an end to the current energy crisis that ensued after Russia’s invasion of Ukraine. The firm also emphasized that investments in LNG are projected to soar by over 50 percent by the year 2029.
Michele Della Vigna, the head of natural resources research for Europe, the Middle East, and Africa at Goldman Sachs, expressed his confidence in the dominance of LNG in the US in shaping future supply dynamics. He stated, “LNG in the US, without any doubt, is dominating future supply and we believe that the capacity growth in LNG is going to bring an end to the energy crises that began a couple of years ago.”
Furthermore, QatarEnergy has been making significant strides in the LNG sector, signing agreements with various countries to supply LNG for extended periods. In January, an agreement was inked with Execelerate Energy to supply LNG to Bangladesh, followed by another deal with Petronet to supply LNG to India in February. Additionally, QatarEnergy announced a substantial expansion of its LNG production in the North Field, further solidifying its position as a key player in the industry.
The analysis by Goldman Sachs also underscored the ongoing transformation in the oil and gas industry as it prepares for a future with declining crude demand and a growing global demand for natural gas. Despite these shifts, the report mentioned that oil companies are still expected to generate attractive returns for shareholders, especially if crude prices remain within the $80 to $90 per barrel range.
Looking ahead, the analysis predicts that capital expenditure in the oil and gas sector will see a gradual slowing down, with OPEC likely to maintain its production discipline in the coming years. As the industry continues to evolve, it is clear that the LNG market is set for a dynamic and transformative journey towards meeting the world’s energy needs.