Seasonal demand for LNG to contract for the first time in eight years – The National

Seasonal demand for LNG to contract for the first time in eight years – The National

The super-chilled fuel favoured by Asian economies has been hit by lockdown measures to contain the coronavirus pandemic. Global demand for liquefied natural gas is set to fall 2.7 per cent year on year, or three million tonnes, in its first seasonal crunch since 2012, according to Woods Mackenzie.. Lockdown measures to contain the coronavirus pandemic have dealt a blow to demand for LNG, a cleaner fossil fuel increasingly used to power Asian economies such as China.. While the country has not enforced a full-scale lockdown, school closures, strict social distancing and remote working are expected to dent demand through the second quarter.. China, which is pushing to revive economic growth, will now focus on industrial demand recovery.. Demand is projected to fall to four million tonnes in the second quarter, a 24 per cent decline compared to the same period last year.. Wood Mackenzie anticipates that US terminals will be underutilised as margins for several energy companies remain negative.. Australia became the largest exporter of LNG last year, shipping out about 77.5 million tonnes.. Qatar shipped 75 million tonnes while the US exported 34.3 million tonnes..