Global LNG supply has grown 2% year-to-date

Global LNG supply has grown 2%, or four million tons, year-to-date, showing deceleration in the pace of growth, data from McKinsey Energy Insights show.

US remains the largest contributor to market growth this year with around eight million tons of additional LNG, although its average output in the past three months is similar to that of early 2019 with an average utilisation level of 44%.

On the demand side, China and Europe increased imports year-to-date by eight million tons, with China continuing to show monthly imports increasing to six million tons while European imports are still declining month-on-month to five million tons. The JKT region has reduced imports by two million tons (2%).

European gas flows

Year-to-date gas demand in Europe is down 12 bcm, or 4%, according to McKinsey.

Demand in the last three months has increased by around one bcm compared to 2019. The main changes between 2020 and 2019 are linked to mild weather in January and lockdowns in April and May. Incremental gas for power demand in Germany of two bcm year-to-date offsets reductions in gas demand elsewhere in Europe.

Domestic supply production is down by four bcm year-to-date while pipeline entries to Europe have declined by 38 bcm, mostly from Russia.

LNG withdrawals into the gas system are now up 6% year-to-date but momentum has dropped in the past three months with 8% lower withdrawals than in 2019.

European storage levels continued to grow in August but are now 5% below the level seen in the same 2019 period.

Source : Oil & Gas Journal