GECF secretary-general Yury Sentyurin said that global LNG trade would grow by 3.0%-3.5% in 2020, a sharp deceleration from a surge of 13% in 2019 when trade volumes reached 354.7 million tons. Sentyurin said the trade would recover to the growth of 6.5%-7% next year before slowing again to 1.5%-2% in 2022-2023 due to slowdown in new LNG capacity which will likely support a recovery in global spot gas and LNG prices.
Sentyurin also warned of a risk to spending as financial investors moved away from fossil fuel. At the same time, the gas industry is still requiring long-term investments to develop projects. He said that producers need to adapt to the situation where lenders reduce exposure to oil and gas.
However, he said that the gas industry can still benefit from the low spot prices, which can encourage countries to expand the share of gas in their energy mixes. He also noted that the increased availability of LNG would allow it to be a more competitive fuel which can reach new markets.
The GECF consists of 11 full members, including major gas producers such as Russia, Qatar, and Iran. It also has nine observer members. The members control 72% of global proven gas reserves, 61% of LNG exports, 55% of pipeline exports, and 46% of the world’s marketed gas production.
