The liquefied natural gas industry is about to enter a boom. Starting gradually this year and accelerating later into the decade, there will be a massive ramp-up of available LNG supply capacity, a trend that the IEA called “unprecedented”.
The global gas market has been tight ever since Russia cut Europe off from more than 100bn cubic metres of molecules amid its invasion of Ukraine. The tightness led to record high prices in 2022, and while gas prices have come down globally since then, they remain elevated compared with historical levels. Additional LNG capacities will go a long way to alleviate the market tightness.
By 2030, the world will have 646mn tonnes of LNG supply capacity, an increase of 188mn tonnes compared with 2023, according to S&P Global Commodity Insights. If the projects that have not taken final investment decisions are included (the ones that have less certainty of being built), then the capacity reaches just under 700mn tonnes.
Touchstone Exploration Inc (LON:TXP) is a Canadian-based, international upstream oil and gas company currently active in the Republic of Trinidad and Tobago. Primera Oil and Gas is the Trinidadian subsidiary of Touchstone.
