In its annual report on liquefied natural gas (LNG), Shell Oil Group (RDSa.L) said Monday that global LNG trade will grow 11% to 354 million tons this year as new factories expand their supply to Europe and Asia.
Shell said LNG trade grew by 27 million tons last year, of which China's demand growth contributed 16 million tons. Shell is the largest LNG buyer and seller in the world.
The report predicts LNG demand will grow to 384 million tons next year. Shell's forecast reflects the vigorous development of LNG industry. Australia, the United States and Russia have opened new production lines. More countries have built LNG receiving terminals and become importing countries.
Asia is the main buyer of LNG, while Japan is still the largest importer. China will become the second largest importer in 2017, driven by the government's coal-to-gas policy.
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