Over 40 percent of the increase in global LNG supplies is expected to occur over the next five years as a series of in-flight projects are completed. This equates to a new LNG train coming on stream every eight weeks for the next five years, the report said.
BP said that by 2035, LNG will surpass pipeline imports as the dominant form of traded gas.
"The growing importance of LNG trade is likely to cause regional gas prices to become increasingly integrated," it said.
Demand for natural gas grows by 1.8 percen per annual, making it the fastest growing fossil fuel, according to BP forecasts. The majority of the increase in demand comes from emerging economies, with China and India together accounting for around 30 percent of the increase and the Middle East over 20 percent, the report said.
The increase in global gas supplies is roughly evenly split between increases in conventional production and shale gas. Much of the increase in conventional production comes from non-OECD countries, with markes increases in the Middle East, China, and Russia, according to the report.
Shale gas grows strongly (5.6 percent per annual) throughout the Outlook, with the share of shale gas in total production increasing from just over 10 percent in 2014 to nearly a quarter by 2035.
Growth in China`s shale gas production increases, such that by 2035, China is the largest contributor to growth in shale gas production, BP said.
BP expects that the US will likely to become a net exporter of gas later this decade. The dependence of Europe and China on imported gas is projected to increase further.
BP expects LNG share of world demand to rise long term
13 May 2016
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The share of LNG of world demand will rise from 10 percent in 2014 to 15 percent in 2035, according to BP Energy Outlook.
