Global Trading of LNG Grew 8 Percent in 2007

Global trading of liquefied natural gas rose 8 percent last year as cold winter temperatures and the closure of nuclear plants in Japan boosted consumption, according to U.S. consultant Facts Global Energy.

Supplies of LNG rose to 172.5 million metric tons from 159.5 million tons a year earlier, Facts said in a report e-mailed today. The U.S. and Mexico together purchased 42 percent more LNG last year at 18.2 million tons, while Asia grew 10 percent to 112.2 million tons. Supplies to Europe fell by 6 percent to 41 million tons.

The U.S. boosted imports because of cold weather in January and February last year and the diversion of cargoes from Europe because of weak demand in the continent. Sales of the fuel rose in Asia as consumers substituted oil with cheaper gas and Japan increased purchases for power generation after closing nuclear plants last year for safety checks, the report said.

"The rise in imports in 2007 can be attributed in part to economic recovery and attractive LNG prices compared with oil- based substitutes, which drove demand in the industrial sector,'' said the report's authors Shahriar Fesharaki and Siamak Adibi.

Japan was the biggest importer of the fuel, followed by South Korea, Spain and the U.S. Indonesia, the world's biggest producer in 2005, trailed Qatar and Malaysia in 2007 as gas supplies were rerouted for domestic use.

Global energy demand may increase at about 1.3 percent a year to 2030, Andy Swiger, president of Exxon Mobil Corp.'s gas and power marketing unit, said on March 10. Demand for LNG may climb to 500 million metric tons by 2030.

Demand in Asia may rise by 9.3 percent in 2008 as China and India are expected to increase LNG imports "significantly,'' Facts Global Energy said.

Source: Bloomberg  

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