Global Gas Demand to Grow at 1.6% Per Year Until 2024

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Global Gas Demand to Grow at 1.6% Per Year Until 2024 10 Monday, June 10, 2019 Economy & Business India central bank to enhance monitoring of shadow banking firms REUTERS western Indian city of Pune. and stoked concerns of a ma- Given the importance of sets after India’s Supreme MUMBAI The comment comes at a laise in the sector. NBFCs for the Indian econo- Court in April struck down its time when there are fears that “The Reserve Bank will my, the governor stressed the earlier guidelines saying it had RESERVE Bank of India India may be facing a major continue to monitor the activ- need for a higher level of su- acted beyond its powers. Governor Shaktikanta Das crisis in its shadow banking ity and performance of this pervision of such companies to The new rules “will sustain said the central bank would sector after shares of Indian sector with a focus on major ensure solid credit growth and the improvements in credit closely monitor the health of mortgage lender Dewan Hous- entities and their inter-linkag- asset liability management. culture” and help in making non-banking financial com- ing Finance Corp Ltd (DHFL) es with other sectors,” he said, Das said as part of initia- India’s financial system strong panies (NBFCs) and it would plunged this week after two in a speech that was published tives to enhance supervision and resilient, Das said on Sat- not hesitate to take correc- credit-rating firms cut their on the RBI’s website late on of NBFCs, the central bank is urday. tive measures, if needed, to view of DHFL debt to “default” Saturday. putting in place a system to Das also urged Indian pub- address issues in the shadow levels. The regulator will soon ensure regular interaction with lic sector banks (PSBs) to not banking sector. The looming trouble at issue final guidelines for li- all stakeholders in the shadow depend solely on government “We will not hesitate to take DHFL comes nine months quidity risk management and banking value chain such as capital infusions to solidify any required steps to maintain after a series of downgrades will put in place a compre- auditors, credit-rating agen- their balance sheets. financial stability in the short-, and defaults at another major hensive information technol- cies and banks. “Depending upon individ- medium- and long-term,” Das NBFC, Infrastructure Leas- ogy framework to strengthen The central bank on Friday ual situations, PSBs should ac- said in a speech on Saturday at ing and Financial Services surveillance of NBFCs, the The logo of Reserve Bank of India (RBI) inside its headquarters in issued new guidelines around cess the capital market for mo- a convocation ceremony in the (IL&FS), shook stock markets governor said. Mumbai recently. (REUTERS) the resolution of stressed as- bilisation of capital,” he said. Asian spot Global gas demand to grow LNG prices fall to 3-year low at 1.6% per year until 2024 Domestic demand REUTERS Essar Steel awarded three in US, MENA would LONDON of their six-cargo tender for end-September, end- contribute to the ASIAN spot prices for liq- October and mid-Novem- uefied natural gas (LNG) ber deliveries, two sources growth in demand, fell to a three-year low said. the IEA said in thin trading as market A South China utility players focused on deals was heard in the market REUTERS for August, when demand for a late-August and a PARIS is expected to pick up. September cargo. Spot prices for July A four-cargo tender GLOBAL gas demand is ex- delivery to Northeast Asia from Indonesia’s Tangguh pected to grow at a rate of are estimated to be $4.25 plant was heard awarded 1.6 percent a year until 2024, per million British thermal at Platts’ JKM plus up to 10 fueled by Chinese consump- units (mmBtu), down from cents per mmBtu, a source tion which will account for $4.50 last week. said. The deliveries, one over a third of the demand That is the lowest since for each half month in Au- growth during the period, the April 2016 when prices gust and September were International Energy Agency slumped to $4.00 per awarded to DGI, Marubeni said on Friday. mmBtu, itself the low- and Shell. China’s push to switch est since Reuters began Pakistan also launched from coal to gas in power assessing prices in July a huge tender for 240 car- generation and natural gas 2010. The August price is goes spread across a 10- for residential use to improve assessed to be around 20- year delivery period, seek- air quality under its “blue 30 cents higher. ing offers by July 18. skies” initiative will play a The lackluster market In the Atlantic Basin, major role in driving de- this week reflects a fall in the Marvel Crane LNG mand, the IEA said. the broader energy com- tanker picked up a com- China’s gas demand plex over fears of a global missioning cargo from growth is seen at an average economic slowdown and Sempra Energy’s Cameron rate of 8 percent, down from the threat of a full-blown LNG, the latest liquefac- the two-digit growth rate in trade war between the tion facility in the U.S. to recent years as its economic United States, a top LNG begin operations. growth slows, but would still exporter, and second larg- The tanker is now account for around 40 percent est buyer China. heading to North West of the global demand increase Brent crude oil prices, Europe, according to ship- in the coming years, said Kei- against which many Asian ping research group Kpler. suke Sadamori, IEA Director The US is expected to continue its lead in supply growth with annual gas output seen exceeding 1 trillion cubic meters by 2024. (AFP) LNG purchases are priced, A trading source said the for Energy Markets & Security. have fallen almost 15% in cargo had been offered at The Asia-Pacific region pected to be a strong source of demand in building and power Australia and Russia would the past three weeks, dip- a 10 cent discount to the will remain the largest source growth, accounting for almost generation, he said. account for around 90 percent ping to below $60 a bar- NBP British month-ahead of gas consumption growth in half of the global increase, re- The United States is ex- of the increase in LNG exports rel on Tuesday for the first price. the medium term with an aver- placing power generation as pected to continue its lead in during the period. time since mid-January. Latin American buy- age rate of 4 percent per year, the main growth driver. supply growth with annual In Europe, the supply gap The market remained ing continued, with Ar- and will account for around 60 In 2018, global gas de- China top output seen exceeding 1 tril- will widen to reach 336 bcm well supplied with Austral- gentina’s IEASA seeking percent of the total consump- mand saw its strongest growth lion cubic meters (tcm) by by 2024, increasing by al- ia’s Ichthys plant offering six cargoes for August into tion increase until 2024. since 2010 at an estimated LNG importer 2024. most 50 bcm per year as do- two LNG cargoes for June. Escobar and Mexico’s CFE Domestic demand in the rate of 4.6 percent, driven by In the LNG market, trade is In the liquefied natural gas mestic production continues Indian buyers, a bright seeking one cargo into United States, the Middle East the United States and China, expected to reach 546 bcm by market (LNG), trade is expect- its slide with the phasing out spot in Asian demand, con- Manzanillo in July. and North Africa, would con- both accounting for 70 percent ed to reach 546 bcm by 2024 of the Groningen field in the tinued to enter the market Platts got its first trans- tribute to the growth in de- of total demand growth. 2024 from 432 bcm in 2018. from 432 bcm in 2018. China Netherlands, and North Sea with Reliance Industries parent bid into Europe mand, the IEA said in its an- “Demand growth in the China will become the largest will become the largest LNG depletion. heard seeking three car- with Trafigura bidding for a nual gas market report. US was the largest, increas- LNG importer by 2024 at 109 importer by 2024 at 109 bcm, IEA said the use of LNG for goes for delivery in July, cargo for delivery into Bar- Gas demand in Europe will ing by 80 billion cubic meters bcm, ahead of Japan ahead of Japan. maritime transport was still a September and October, celona at the end of July for benefit from the shutdown of (bcm) or over 10 percent. The The IEA report said the niche market concentrated in according to sources. $3.30 per mmBtu. The bid coal and nuclear power plants, switch from coal to gas mainly United States was expected to Europe with around 155 LNG- Another source said came on Thursday when but gains would be limited by in power generation for the US The weather also had a ma- surpass Qatar and Australia fuelled vessels in operation Reliance bought a cargo Platts assessed the south- the expansion of renewables or in residential and industry jor impact on US gas demand to become the world’s largest as of early 2019, but the fleet for Aug. 10-15 at $4.45- ern European LNG price at and lower demand for heating, sector for China was respon- in 2018 with a colder-than- LNG exporter by the end of the of LNG-powered vessels was $4.55 per mmBtu.
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