Supply & Demand

Coal growth may continue despite bullish LNG talk

Shell has predicted strong growth in the LNG market over the next decade, but underinvestment in liquefaction capacity could boost prices and lead to a coal resurgence Shell has predicted strong growth in the LNG market over the next decade, but underinvestment in liquefaction capacity could boost prices and lead to a coal resurgence.
By Peter Stewart 6 March 2018 0 29864
Mount Owen coal complex, Australia Coal could potentially see a resurgence in the energy mix – with serious consequences for air quality and climate change. (Glencore)

In its 2018 LNG Outlook, Shell forecasts the power sector will drive a 30% increase in global energy demand between 2017 and 2030. The oil and gas major takes a characteristically bullish view of the LNG market, arguing investment in liquefaction capacity is needed now to avoid shortages in the mid-2020s. 

Shell predicts a compound average growth rate (CAGR) of 4% in the global LNG market between 2015 and 2040, driven largely by growth in Asia. It notes gas overtook coal as the largest...