2020 WORLD LNG REPORT - IGU

1 Sponsored by2020 WORLD LNG REPORT23 IGU WORLD LNG REPORT - 2020 Edition4 CMYCMMYCYCMYKRE Advertorial_International Gas Union - LNG 1 4/8/2020 11:16:51 PM45 IGU WORLD LNG REPORT - 2020 EditionMessage from the President of the International Gas Union785298969072102822 Chapter 2 : LNG LNG Exports by LNG Imports by LNG Interregional TradeChapter 3 : LNG and Gas PricingChapter 1: State of the LNG IndustryChapter 4 : Liquefaction Global Liquefaction Capacity and Liquefaction Capacity by Liquefaction Floating Liquefaction Map: Global LNG Liquefaction Risks to Project Update on New Liquefaction Refrigeration Compressor Driver DevelopmentsChapter 6 : LNG Receiving Receiving Terminal Capacity and Global Receiving Terminal Capacity and Utilisation by Receiving Terminal LNG Storage Receiving Terminal Berthing Floating and Offshore Receiving Terminals with Reloading and Transshipment Capabilities Map: Global LNG Receiving Risks to Project DevelopmentChapter 5 : LNG Carriers5.

2 3 F l o a t i n g S t o r a g e a n d R e g a s i fi c a t i o n U n i t Ownership (FSRUs) 2020 LNG Vessel Costs and Delivery Charter Fleet Voyages and Vessel Utilisation Map: Major LNG Shipping Near Term Shipping DevelopmentsAppendices1. Table of Global Liquefaction Plants2. Table of Liquefaction Plants Sanctioned or Under Construction3. Table of Global Active LNG Fleet, Year-End 20194. Table of Global LNG Vessel Orderbook, Year- End 20195.

3 Table of Global LNG Receiving Terminals6. Table of LNG Receiving Terminals Under ConstructionChapter 8 : Data Collection for Chapters 3, 4, 5 and Data Collection for Chapter Preparation and Publication of the 2020 IGU WORLD LNG Regions and Conversion Discrepancies in Data vs. Previous IGU WORLD LNG ReportsChapter 7 : The LNG Industry in Years AheadTable Of Contents67 IGU WORLD LNG REPORT - 2020 EditionPresident s MessageJoe M. KangPresident of the International Gas UnionYours faithfully,Dear colleagues,I write this message with a heavy heart at a time when the WORLD is struggling to manage the growing global impact of the COVID-19 virus.

4 These are difficult times and I hope we emerge stronger and more united. Access to energy remains a critical enabler to keeping people safe, connected and informed in such times and our industry plays a critical role in making sure that the lights are on, homes are heated, hospitals and industry keep running and essential goods are transported without present to you the 2020 IGU WORLD LNG REPORT , a comprehensive overview of physical and market developments in the global LNG industry in 2019. Gas continues to play a vital role towards an economically and environmentally sustainable energy future.

5 LNG in 2019 continued to play a key role in improving air quality in markets such as China. It produces less than 10% of the particulates1 and 50% less GHG than coal when used in power2, 21% less than fuel oil in transport3 and above 95% efficiency4 when used to heat homes. The industry continues to improve measurement and reduction of emissions across the full LNG value LNG trade increased to MT, an increase of MT since 2018 and the sixth year of consecutive growth in LNG trade. This was on the back of increased exports from the USA, Russia and Australia as well as Algeria and Egypt.

6 Asia Pacific and Asia again imported the most volumes in 2018, together accounting for almost 70% of global LNG imports. However, the largest change in imports was observed in Europe, where the UK, France, Spain, the Netherlands, Italy and Belgium together imported 32 MT more than in , MTPA of liquefaction capacity was sanctioned, and MTPA in capacity was brought on-stream in 2019, mostly from Russia, Australia and the US. A huge wave of liquefaction capacity is currently still in pre-Final Investment Decision stages, totalling MTPA with most of this capacity in the US and Canada, and a significant proportion in Africa and the Middle East ( MTPA each).

7 The LNG shipping industry kept pace with this growth, adding 42 new vessels to a total of 541 active vessels by the end of 2019. The active fleet includes 34 FSRUs and 4 FSUs, demonstrating the continued interest in flexible solutions to enable markets to start importing LNG or increase their LNG imports as energy demand grows. Regasification capacity continued to absorb the increase in supply and meet demand growth, adding MTPA in 2019, reaching 821 MTPA by February 2020. Six new terminals began importing cargoes in 2019, and three expansion projects were completed.

8 Asia Pacific took the lion s share of regas capacity additions with a total of MTPA, while India added MTPA. A total of 37 markets are now equipped to import LNG. A further MTPA of regas capacity is currently under construction (as of Feb 2020), of which 12 are FSRUs, and of which MTPA is expected to be onstream by end 2020, potentially adding 3 new importing markets: Bahrain, Ghana and the Philippines. 2019 also showed significant growth specifically for floating regas terminals with FSRUs being added in Jamaica, Turkey and BangladeshInterest in LNG as a marine fuel increased with the IMO 2020 regulations coming into force at the start of 2020, which will help reduce emissions, improve efficiency and trigger cost benefits.

9 While the industry has invested in infrastructure ahead of demand, continued investment in the coming years will aid the adoption of LNG as a marine fuel. Gas continued to deliver security of electricity supply critical to the growing share of renewable energies. This is not just supporting renewables on the days wind does not blow or the sun does not shine, but also supports hydro-electric generation during extended dry seasons in, for example, Brazil and Colombia. Argentina demonstrated how flexible the LNG supply chain can be to respond to changing gas monetisation strategies from signing of the charter agreement for the FLNG unit to export of the first LNG cargo took a mere 12 months.

10 Almost a billion people today have no access to electricity5 and nearly three billion have to cook with fuels that produce toxic fumes in their homes6. Indoor air quality still represents a large part of the premature deaths attributable to air pollution ( million deaths in 20167) proof of the urgent need to tackle this issue. As the cleanest-burning fossil fuel, natural gas has a key role in providing reliable and cleaner energy to all. Even in the most developed markets, affordability and reliability of clean energy is a key issue and switching to natural gas offers an enormous opportunity.