Analysis on Impact of COVID-19 on Liquid Natural Gas

The epidemic of COVID-19 has caused immense and unforeseen social and economic tension. Its consequences are serious and it is too early to assess results, although its duration is uncertain. The LNG business is influenced in a variety of areas, with some obstacles but still having some prospects. The LNG industry will theoretically recover from this crisis more healthily than at the beginning of this year.

The first issue that impacted LNG (liquefied natural gas) was the collapse in the prices of crude oil. Brent crude oil dropped by mid-March 2020 to USD 24.88 per bbl from USD 70 per bbl in January 2020. The inclination to USD 34 per bbl in March compared with USD 64 per bbl in January may contribute to a decline in the price of LNG contracts, but the time gap embedded for other contracts which imply that the factors do not operate before mid-year. The average is around USD 64 per bbl.

Most of the customers gained lower spot rates last year because the majority of LNG was supplied under term contracts. In December 2019, the average LNG prices were USD 9.24 per MBtu imported into Japan. The real landed price could be half of that by mid-2020. Subsequent Asian markets are emerging from the current coronavirus or COVID-19. Crisis, low prices of the LNG are likely to boost the demand in the desired market.

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The report covers the basic dynamics of the global 2015-2025 Liquid Natural Gas market. It scrutinizes several data and figures, and numerous volume trends. A number of potential growth factors, risks, restraints, challenges, market developments, opportunities, strengths, and weaknesses have been highlighted. Another factor affecting market growth has also been included in the report.

Impact of COVID-19 on LNG

Gas industries are now experiencing fresh threats as a consequence of two events: the COVID 19 pandemics and global oil demand fluctuations as a result in the shortage of liquefied natural gas (LNG). Along with this, the existing imbalance between supply and demand in LNG markets will intensify and lengthen, contributing to a lower price setting. It could threaten, in the short term, up to 8% of global demand for LNG (over 25 million tonnes, or MTPA), whereas another one or two years could continue in the low price setting.

The cost analysis of the Global Natural Gas Market has been performed while keeping in view manufacturing expenses, labor cost, and raw materials and their market concentration rate, suppliers, and price trend. Other factors such as Supply chain, downstream buyers, and sourcing strategy have been assessed to provide a complete and in-depth view of the market. Buyers of the report will also be exposed to a study on market positioning with factors such as target client, brand strategy, and price strategy taken into consideration.

Scope of the Report:

Report evaluates the growth rate and the Market value based on Market dynamics, growth inducing factors. The complete knowledge is based on latest industry news, opportunities and trends. The report contains a comprehensive Market analysis and vendor landscape in addition to a SWOT analysis of the key vendors.
Geographically, this report split global into several key Regions, revenue (Million USD) the geography (North America, Europe, Asia-Pacific, Latin America and Middle East & Africa) focusing on key countries in each region. It also covers market drivers, restraints, opportunities, challenges, and key issues in Global Liquid Natural Gas Market.

Segment by Type, the Liquid Natural Gas market is segmented into
Dry Natural Gas
wet Natural Gas

Segment by Application, the Liquid Natural Gas market is segmented into
Vehicle Fuel
Marine Fuel
Industrial Power Generation
Living Fuel
Others

Regional Analysis:-

Geographically, the report covers research on production, consumption, revenue, market share and growth rate, and the 2020-2026 forecast for the following regions: North America, Europe, Asia-Pacific, South America, Middle East, and Africa.

Conclusion

In conclusion, the effect of Covid-19 on the availability of LNG would continue much longer than the effects on global demand for LNG. The U.S. has been the new epicenter for the epidemic of COVID after the move from China to Europe, as the third most populated nation in the world and the biggest natural gas user, the implementation of restrictions to reduce the spread of COVID is expected to have a significant impact. Effects on the world demand for electricity due to freezing weather from mid-March until the end of April, the rise in usage was led by an improvement in increasing the gasoline prices in the residential and business market. Whereas throughout the industrial sector gas use has been very stable and over the span has risen marginally. The energy sector seems most affected by COVID, but despite a downward trend in electricity demand, has increased gas and renewable energy production, especially coal, is offsetting energy generation from many other sources.