Increase in Recoverable LNG Resources Would Increase PNG & LNG Production

Papua New Guinea: The PNG LNG fields operated by ExxonMobil has found from a study that there was an increase in the resource of LNG by 25% of the previous estimated resource. By this, the reserves were increased from 9.2 Tcf to 11.5 Tcf. PNG LNG provides both short term as well as long term contracts to Asian countries. PNG LNG had produced 7.9 MMT of LNG in 2016 which is 14% higher than the planned production. With an increase in resources there will be a potential for both mid and long term sales of LNG in the coming years.

TechSci Research depicts that growing focus on expansion of gas pipeline infrastructure, rising demand for natural gas from downstream sectors, declining LNG prices coupled with implementation of favourable government policies, is boosting demand for LNG across the globe. Increasing focus on development of adequate support infrastructure in various developing as well as developed economies is expected to boost LNG demand in the coming years.

According to released report of TechSci Research, “Global LNG Market Demand & Supply Analysis, By Region, By Country, By LNG Terminal, Competition Forecast and Opportunities, 2011-2025”, global LNG supply market is forecast to exhibit a CAGR of over 5% during 2016-2025, on account of rising demand for cleaner fuels; oversupply of LNG due to liquefaction capacity additions in Australia, US and Papua New Guinea; and declining prices of LNG over the last few years. In 2015, global LNG export market was dominated by Qatar and Australia, due to huge natural gas reserves and large liquefication capacities in these countries. Increase in spot market purchase is expected to keep LNG prices under check in Asia-Pacific and Europe.