Research firm Wood Mackenzie released its annual review of the LNG industry, titled “LNG: 2014 in Review,” the company said in a Jan. 8 statement. The company highlighted several findings from its report, including:

  • Global LNG production reached 246 million tonnes per annum (mtpa);
  • Asian spot LNG prices peaked at more than $20 per million Btu (MMBtu) but fell to less than $10/MMBtu;
  • South Korea imported 9% less LNG in 2014 than 2013;
  • Papua New Guinea’s PNG LNG project exported 3.7 million tonnes in first 7 months of operation, operating at close to 90% of nameplate capacity;
  • 67 new LNG ships were ordered, topping the previous peak of 52 ordered in 2011; and
  • 30 mtpa of new production capacity took final investment decision.

“Production was up 5 million metric tonnes per annum to 246 mtpa and overall trade was boosted by higher levels of re-exports,” said Giles Farrer, Wood Mackenzie’s principal analyst—global LNG. “But the big surprise was that Asian LNG demand was much lower than expected. Demand in emerging markets, like China, failed to grow to the extent anticipated and demand in the established South Korean market fell considerably.”