Liquefied natural gas (LNG) production capacity is receiving a green light amid strong demand this year Materials and Products

SINGAPORE - A record amount of liquefied natural gas (LNG) production is expected to receive the green light in 2019 amid strong global demand, particularly from China, analysts say.

Giles Frier, director of global research on liquefied natural gas and liquefied natural gas at Wood Mackenzie, said a final investment decision could be made on more than 60 million tonnes per year of liquefied natural gas production this year, well above the previous record of about 45 million tonnes. 2005, a threefold increase from last year's 21 million tonnes.

The new production capacity will boost the amount of gas due to come into production in the coming years, adding to the more than 320 million tonnes of liquefied natural gas (LNG) shipped worldwide in 2018, according to freight data on Revitivecon.

"If you look at the potential demand for liquefied natural gas, and look at the costs where it is now ... it motivates companies to push forward projects and motivate buyers to come forward to support some of these projects," Freer said. Wood Mackenzie said in a report to its customers that this year's leader of the LNG 2 project in the Russian Arctic, with a total investment of $ 27 billion, has at least one project in Mozambique and three projects in the United States.

The three potential US projects are Qatargas' Golden Pass joint venture with ExxonMobil and ConocoPhillips, the Fincher Global LNG's Calcchio Pass project, and the sixth production project of Spinney Energy's Spin Pass.

Canada's Woodfiber LNG project, which is being developed by Singapore-based Pacific Oil and Gas, may also receive approval to move on with new production capacity that will boost the amount of gas that is slated for production in the coming years, Wood Mackenzie said.

New projects usually take several years to develop, with a number of those projects under study likely to ship gas in the early 1920s if approved.

A final investment decision on Golden Pass is expected this month, with a decision on Sabine Pass 6 expected in the first quarter. The decision is expected to be issued in the first half.

With new potential production from Russia, Australia, East Africa and the United States, Qatar, the world's largest exporter of LNG in 2018, is also expanding.

"Qatar recognizes that it needs to capture the demand for its liquefied natural gas now, so it is accelerating its projects," Freer said.

"Now is a good time to invest. If you look at the costs of the industry, it fell from its peak two to three years ago. So if you invest now, you invest at the bottom of the cost cycle. "

Other projects waiting for final investment decisions are the seventh LNG unit in Nigeria and the expansion of three production units in Papua New Guinea, although it is widely expected that some projects will be pushed into the 1920s.

Among the factors that lead to increased optimism in the sector is the huge increase in demand growth in the country as part of a program to convert homes and factories from coal to gas, as well as increased reliance on LNG imports in Europe and the trend to reduce the use of more polluting coal.

Liquefied gas supplies are expected to grow at a record 40 million tonnes, or 13 percent, according to estimates this year. This puts pressure on LNG prices in Asia, which currently stands at around $ 9 per million British thermal units.

Edmund Siau, analyst at FG. Most new production this year will come from the United States with the launch of new production units from Cameron LNG, Corpus Christi LNG, Elba Island, LNG and Freeport LNG.

In terms of demand, Siwa says China will continue to achieve the strongest growth, while Europe may also see increases after years of stagnation, growing by 20 million tons and playing a key role in absorbing new US supplies.

But analysts say risks are looming, especially because of the US-US trade war that threatens global growth, and which may push oil and gas prices