Global LNG market
The global LNG (liquefied natural gas) supply continued to experience strong growth in 2016, driven by supply growth from Australia and the United States.
However, this LNG supply growth was to some extent offset by the rise in LNG demand in 4Q16. Overall, global demand rose 6% YoY (year-over-year) in 2016.
According to Anatol Feygin, Cheniere Energy’s (LNG) executive vice president and chief commercial officer, on the company’s 4Q16 earnings call, “The demand pull from Asia was headlined by China which increased imports by more than 60%, about 3.5 million tons in Q4. South Korea and Spain both imported 16% more LNG in Q4, while Taiwan was up double digits at 13%. A cold snap in Asia helps underpin the increased demand, and LNG was able to quickly fill in for nuclear outages, domestic gas shortages and compete effectively with coal and liquid fuels.”
Cheniere Energy took advantage of strong Asian (EPP) LNG demand growth by exporting 18 out of 24 of its cargoes to Asian markets during 4Q16.