WoodMac: Over three quarters of new LNG supply could be impacted in 2-degree worldCreated: Thursday, 17 December 2020 10:07Wood Mackenzie’s latest report suggested that over three quarters or 77% of new LNG supply are at risk under a 2-degree scenarioUnder the scenario, gas demand comes under pressure from increased investments in renewables and energy storage in the power sector, as well as efficiency improvements and adoption of new technologies in non-power sectors. Low-cost LNG suppliers Russia and Qatar are expected to be front-runners to fill the modest supply gap, while low Henry Hub prices would also mean competitive US LNG projects. As LNG demand starts declining post 2035, US LNG underutilisation will be required to balance the market, similar to what has happened in 2020. Wood Mackenzie principal analyst Kateryna Filippenko said; “With weaker global gas demand, the space for new developments will be limited. In a 2-degree world, only about 145 bcm per annum of additional LNG supply is needed in 2040 compared to 450 bcm per annum in our base case outlook.

Source: The North Africa Journal December 17, 2020 12:22 UTC