LIQUEFIED natural gas output may rise 14 percent next year as ventures in countries like Qatar and Indonesia, accounting for more than a quarter of the world's supplies, begin production, said a consultant yesterday.
Output of LNG, or gas chilled to liquid form for transport by tankers, may climb about 25 million metric tons to about 208 million metric tons next year, said Andy Flower, an industry consultant and a former executive at BP Plc's LNG business.
The increase may meet annual demand from South Korea, the world's second-biggest LNG buyer, according to Bloomberg News.
Global LNG trade rose 7.3 percent to 165.3 million tons last year, according to the BP Statistical Review of World Energy June 2008. Demand for the cleaner-burning fuel will increase 10 percent a year through 2015, more than five times as fast as crude oil, Citigroup Inc analysts led by James Neale said in April.
"Consumption of LNG this year may reach about 183 million tons from 173 million last year," Flower said. "New projects are starting up in Qatar, Indonesia, Yemen, Australia and Russia."
Flower's output estimates for last year are higher than BP Plc's. Projects from Australia to Nigeria may have produced about 88 million tons in the first six months of 2008, he said.
Still, output was lower than expected because of using gas for domestic use and inadequate pipeline infrastructure and equipment failures.