Increasing concerns regarding the application of LNG
“The chances of a sustainable recovery in the global demand for natural gas is threatened by the economies which have been slow to restart while the country out of isolation and face a resurgence of cases of Covid-19 in some parts of the world “, according to broker of vessels, Poten & Partners, and reported by Natural Gas Intelligence (NGI).
“Industrial demand remains weak in key markets, especially in Asia where some of the world’s biggest importers of liquefied natural gas (LNG), while the rapid recovery of demand has been increasingly “unpredictable and volatile” elsewhere “, said Jason Feer, head of global. business intelligence, in a webinar Wednesday.
“LNG demand in South Korea, Japan, and Latin America has been particularly hard hit, he noted. While the world health Organization (WHO) reported on Sunday, the highest daily increase of the infections, with peaks in North America and South, South Korea and Japan have better managed the epidemic. But Feer has said that “the global economic downturn has affected the importers base in Asia,” wrote NGI.
“During this time, the chinese demand has rebounded strongly in recent months, the action lock is being largely relaxed and the demand of the consumers repressed with increased earnings, but these seem to be decreasing,” said Poten. In India, where some of the measures of locking the more stringent were imposed, the demand for gas has increased as a result of the massive purchases of fertilizer in cash, but it is difficult to know if such patterns continue. ”
“It’s something to monitor, is this something that can be sustained,” said Feer about India, ” or are we simply responding to the initial demand pent up when the economies open up? “