Shell Says LNG Market is Only Going to Grow
In the past few years, Royal Dutch Shell has shifted parts of its business focus in other directions. One of the areas in which they’ve pushed forward in a vigorous fashion has been in alternative fuels, especially when it comes to the market for liquefied natural gas (LNG). This segment of the energy market has seen tremendous growth over the past decade.
The scope of that growth has led some to question whether LNG may fall victim to the problem of oversupply that’s plagued the crude oil market for nearly three years. Despite such naysayers, Shell made a point to emphasize that continued growth in the market is expected over a long-term span that reaches the year 2030.
Shell’s analysis of the current LNG market was presented in a report that showed how Asian and Middle Eastern markets saw larger demand than the company expected in 2016. Such increases are expected to become the norm because of projections by Shell that trade in this specific commodity is expected to jump 50 percent by 2020 from what took place just three years ago. Each year through 2030 is expected to see a four to five percent annual jump in demand.
Two particular markets that will serve as central points when it comes to exports are the United States and Australia. One of the clearest indicators of just how much potential exists when it comes to increasing Shell’s LNG market share is the fact that in 2000, just 10 countries imported the product. That total has since leaped to 35 countries, including Middle Eastern entities like Egypt and Jordan.
Shell quite obviously has a vested interest in helping grow this burgeoning market after having purchased LNG giant, BG Group, last year for the whopping price of $54 billion.