GECF Takes Part in LNG India Summit 2019
On 28-29 November 2019, LNG India Summit 2019 was held in Delhi, India. The event explored topics of empowering a gas based economy for India; LNG market dynamics, marketing and innovations, trading and pricing, infrastructure and equipment, regulations and technologies; fertilizer sector and chemical industries; small scale LNG and bunkering; LNG powered transport.
The Gas Exporting Countries Forum (GECF) was represented by Dr. Aydar Shakirov, Gas Transportation and Storage Analyst at the Gas Market Analysis Department, who took part in the panel discussion on the Indian LNG Market – Growth, Opportunities & Challenges. Dr. Shakirov shared the GECF’s views on the current and future role of natural gas in the global energy mix, short-term outlook of the global LNG industry, robust LNG liquefaction capacity growth in the world, key drivers of LNG demand, dynamics of regional LNG prices, LNG shipping trends and the impact of the global natural gas market developments on India as a major gas consumer.
In particular, the GECF representative mentioned, that the steady growth in global liquefaction capacity has led to LNG oversupply on the global market, which has entailed the fall in spot gas prices and the convergence of regional gas prices. In 2020, the market might still witness low spot gas prices, however starting from 2021 the growth in LNG liquefaction capacity is expected to slow down, which might contribute to the recovery of spot gas prices. He stated that natural gas will become a destination fuel, with a great potential to complement the intermittency of renewable energy sources. The role of natural gas will grow even more, if the gas industry succeeds in introducing carbon capture and storage technologies, shrinking methane leakages and promoting blue hydrogen.
The GECF delegate especially stressed the key role of GECF Member Countries in meeting India’s LNG demand. In the first 10 months of 2019, the GECF Member Countries accounted for 84% of LNG supply to India, with Qatar, Nigeria, U.A.E. and Angola standing out among the suppliers.