LNG carrier owner GasLog sees a positive outlook for the sector driven by both increased production and import demand.
“The outlook for LNG shipping continues to be positive, with significant year-on-year LNG supply increases as new projects come online and ramp up production, particularly in Australia and the US,” GasLog CEO Paul Wogan said in a Q2 results call.
The first half of 2017 saw an 11% growth in global LNG imports to 141m tonnes. The largest increase was seen from China with a 35% jump in LNG imports more an than an additional 4m tonnes making it the third largest consumer of LNG in the world.
The world’s two largest consumers Japan and South Korea also saw good growth with 10% and 18% increases respectively.
“The Chinese government has set a target for gas to make up 10% of the country’s energy mix by 2020 from around 6% today. We expect this additional gas will come from a mix of increased domestic supply, imported pipeline gas, and most importantly, LNG imports, particularly for the large coastal markets,” Wogan said.