Latest News 2020: Liquid Natural Gas Market by COVID19 Impact Analysis
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 Liquid 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 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.
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Liquid Natural Gas Market Research Report is a Proficient and In-Depth Study on the Existing State of Liquefied Natural Gas Industry. This Report Focuses on the Major Drivers, Restraints, Opportunities and Threats for Key Players. It also Provides Granular Analysis of Market Share, Segmentation, Revenue Forecasts and Regional Analysis till 2022.
Liquid Natural Gas (LNG) Market Scope:
· Liquid natural gas (LNG) is natural gas that has been cooled to a liquid state, at about -260°Fahrenheit, for shipping and storage. The volume of natural gas in its liquid state is about 600 times smaller than its volume in its gaseous state. This process, which was developed in the 19th century, makes it possible to transport natural gas to places pipelines do not reach and to use natural gas as a transportation fuel.
· According to the Segmentation of types, all the market of Liquid Natural Gas (LNG) can be divided as follows:
· The first kind need to mention is APCI, it hold a comparatively larger share in global market, which accounts for about 78.34% in 2018.
· The following is Cascade took 15.41% market share in 2018. And Other took 6.25% market share in 2018.
· Market Analysis and Insights: Global Liquid Natural Gas (LNG) Market
· In 2019, the global Liquid Natural Gas (LNG) market size was US$ 139620 million and it is expected to reach US$ 206710 million by the end of 2026, with a CAGR of 5.7% during 2021-2026.
Impact on Different LNG
Transportation LNG
The lock-ins was at sights as a consequence of rising prices for shipping to global markets and fast breakeven shale economies in the Covid-19. Companies in the value chain will react quickly, evaluate their position in light of the current business climate and take advantage of the short and long-term opportunity to gain value.
COVID-19 can affect the global economy in 3 main ways: by directly affecting production and demand, by creating supply chain and market disturbance, and by its financial impact on firms and financial markets.
Liquid Natural Gas (LNG) Market, By Application (2016-2027)
Transportation fuel
Power generation
Mining & industrial
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.