ANNUAL REPORT 2019 - Liquefied Natural Gas · ANNUAL REPORT 2019 Vincent Demoury, General Delegate FLAME – MAY/13/2019. FLAME 2019 - AMSTERDAM 2 SUMMARY ... (bcm) 6 MAJOR LNG FLOWS

GIIGNLANNUAL REPORT 2019

Vincent Demoury, General Delegate

FLAME – MAY/13/2019

FLAME 2019 - AMSTERDAM 2

SUMMARY01 02

KEY FIGURES SUPPLY & DEMAND EVOLUTION

03SHIPPING

04 05CHINESE LNGSPOT AND SHORT-TERM

TRADE

3

LNG PROVIDES ENERGY ACCESS TO 42 COUNTRIES WITH A COMBINED POPULATION OF 4.9BN20 producing countries supplied LNG to 42 importing countries in 2018

LNG ImportersLNG ExportersDual Importers and Exporters Ceased / Suspended LNG Exporters

FLAME 2019 - AMSTERDAM

LNG imports increase for the 5th year in a row


THE LNG INDUSTRY IN 2018

4

313.8 mtImported

11%

406 mtpaLiquefaction capacity

25% 42

+8.3%

% of global gas demand

+41 mtpa

Importingcountries

Deliveredon spot*

*Spot: transactions with physical delivery occurring less than 3 months from the transaction date

Source: GIIGNL Annual report


ASIA DRIVING LNG IMPORT GROWTH

101,8

289,8

313,8

2000 2010 2011 2012 2013 2014 2015 2016 2017 2018

LNG imports 2010-2018 (MT)

Source: GIIGNL Annual report, IEA WEO2018

LNG net trade by region (bcm)

6

MAJOR LNG FLOWSIn 2018, intra Asia-Pacific flow continued to dominate trade flows

Export Import



LNG IMPORTS IN 2018 VS. 2017Asia consolidated its position as the largest LNG importing region due to growth in China, South Korea and India

Americas+0.4 MT(+2.5 %)

Asia +27.4 MT(+13.0 %)

Middle East-6.7 MT

(-42.5 %)

Europe+2.9 MT(+6.4 %)

Global+24 MT(+8.3 %)

+15.0 MT+6.1 MT

-4.3 MT+3.2 MT

-1.1 MT

Source: GIIGNL Annual report, Kpler


SOURCE OF LNG IMPORTS IN 2018 VS. 2017

MiddleEast

(+1.1 %)

LNG supplies from the Atlantic Basin on the rise due to increase of US and Russian production

Pacific Basin+6.1 MT(+4.7 %)

Global+24 MT(+8.3 %)

+8.4 MT

+7.3 MT

+11.1 MT

AtlanticBasin

(+25.1 %) 67,1 84,0

2017 2018

91,3 92,3

2017 2018

131,4 137,5

2017 2018


563 LNG Vessels (+52 vs. 2017)

33 FSRUs

44 vessels < 50,000 m3

57 new ships delivered / 5 ships scrapped

138 ships on the order book / half of it tied to a specific project or charters

Average spot charter rate: $88,692/day • vs $46,058/day in 2017 (for a 160,000 m3 LNG carrier)


LNG SHIPPING IN 2018Shipping capacity struggling to meet new exports


10

SPOT & SHORT-TERM TRADE IN 2018The share of spot & short-term trade increased due to the flexible volumes from US and Russia

Total Imports(MT)

Spot & Short-term SpotImports (MT) Share (%) Imports (MT) Share (%)

313.8 99.3 32% 78.7 25%

41,7

61,2 59,265,0

69,6 68,474,6 77,6

99,3

27,0 31,6

0,0

10,0

20,0

30,0

40,0

50,0

0,0

20,0

40,0

60,0

80,0

100,0

2010 2011 2012 2013 2014 2015 2016 2017 2018

MTPA (%)Spot & Short-term vs. Total LNG Trade



-

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000

2017 2018 2017 2018 2017 2018 2017 2018 2017 2018

Spot & Short-term quantities received by top 5 importing countries (1000T)

Africa Europe AmericasMiddle East Asia-Pacific Re-exports

11

SPOT & SHORT-TERM TRADE IN 2018 VS. 2017China and South Korea increased spot & short-term quantities from US and Australia


China Japan South Korea India Taiwan

+114%

+19% +63%

+33%

+69%



CHINESE LNG DEMAND : STRONG FUNDAMENTALSChinese LNG imports have doubled in the last two years

3

54

17,2

0,0

5,0

10,0

15,0

20,0

25,0

30,0

0

10

20

30

40

50

60

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

%MTPAChinese LNG imports & Global market share



CHINESE LNG TERMINALSChinese regasification capacity needs to be continuously developed

54

16

51,9

68,6 69,6

0

10

20

30

40

50

60

70

80

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

MTPAChinese LNG imports & regasification send-out capacity

(1Q2019)


14

LNG TRUCKING IS KEY TO LNG LOGISTICS IN CHINA….


Around one-quarter of LNG imports were distributed by trucks in 2018

China uses LNG trucking as an effectiveway of building a strong LNG supply

systemto supply gas to towns and cities

without pipelines

LNG from onshore factories and coastal receiving terminals is distributed

to industrial factories, city gate stationsand refilling stations by truck-carried

tankers

Volume of truck-carried LNG in China (MT)

3.5

5.9

7.18.2

10.1 9,85

1.9 1.9

3.7

5.5

10.5

14

0

2

4

6

8

10

12

14

16

2013 2014 2015 2016 2017 2018

Onshore LNG Terminal LNG Source: ENN, GIIGNL Annual Report

15

….AND PICKING UP IN EUROPE


Europe loaded around 1.6 MT onto trucks in 2018

Source: GIIGNL Annual Report

2576,5

29,5 27,6

99

758,4

490,8

37,625,8

112,253,4 30,8

116,3

718,5

459

26,4

0

100

200

300

400

500

600

700

800

Belgium France Netherlands Poland Portugal Spain Turkey UK

Volume of truck-carried LNG in Europe (103 T)

2017 2018

16

CONCLUSIONSGIIGNL 2019 ANNUAL REPORT


Policy-driven China and South Korea continue to drive demand growth

Demand moves East, supply moves West

Supply hierarchy changing, Qatar under pressure

Shipping showing signs of tightness

Receiving infrastructure continues to grow although at a lower pace than supply

Spot & ST at all-time high

Supply to rise again in 2019 as global liquefaction capacity remains in a period of expansion

17

THANK YOU



Appendices00

19

RE-EXPORTSTotal 11 countries reloaded LNG


1,61

0,56 0,53

0,26 0,26 0,250,15

0,07 0,07 0,02 0,01

France Singapore Netherlands Belgium Spain UK Japan Brazil India Dom. Rep. Finland

Re-exports loaded by reloading country in 2018 (MT)2017 2018

20

RE-EXPORTSTotal 22 countries imported reloaded LNG


0,740,68

0,42

0,33

0,20 0,19 0,190,13 0,11 0,11

0,07 0,08 0,07 0,07 0,07 0,07 0,06 0,06 0,06 0,04 0,03 0,01

Re-exports unloaded by receiving country in 2018 (MT)2017 2018

Documents

ANNUAL REPORT 2019 - Liquefied Natural Gas · ANNUAL REPORT 2019 Vincent Demoury, General Delegate FLAME – MAY/13/2019. FLAME 2019 - AMSTERDAM 2 SUMMARY ... (bcm) 6 MAJOR LNG FLOWS