Shell plc predicted on Thursday that Europe will compete with Asia for a "limited new supply" of liquefied natural gas (LNG) over the next two years and that this new dynamic could "dominate LNG trade over the longer term." Europe's LNG imports jumped by 60% in 2022 after a block on Russian gas, and it was able to secure enough gas partly due to a drop in demand in China, Shell explained.
"With reduced Russian pipeline gas, LNG is becoming an increasingly important pillar of European energy security, supported by the rapid development of new regasification terminals in north-west Europe. In contrast, China is evolving from being a rapidly growing import market to playing a more flexible role with an increased ability to balance the global LNG market," Shell said, adding that more investment in liquefaction projects will be needed "to avoid a supply-demand gap that is expected to emerge by the late 2020s."
