Back to Petroleum Blog

Snapshot of gas and LNG flows and market dynamics: Q2 2021

Our dashboards summarize recent gas and LNG trends and developments that have occurred in key markets around the world.

Brings expert knowledge on oil and gas strategy, energy-market forecasting, proprietary data, and advanced analytics

Helps leading energy and capital-intensive companies with shaping their strategies and work in M&A, commercialization, negotiations, and transformations (including digital), bringing particular expertise in the gas and broader energy sector

Snapshot of LNG market dynamics

LNG supply for H1 2021 was up 8.2 MT or 4 percent compared to H1 2020. With Q1 2021 LNG supply flat year-on-year, all of the increase in supply took place in Q2 2021 and originated primarily from the US (+8.3 MT or 79%). Notably, Q2 2021 LNG supply was up compared to Q2 2020 in Malaysia (+1.5 MT) and Russia (+0.7 MT), however down in Nigeria (-1.2 MT) and Australia (-0.3 MT).

The opening of the arbitrage between the Atlantic and Pacific basins also led to a 57 percent increase in Atlantic-Pacific shipping ton miles (+129 BTMi).

From a demand standpoint, China continued to dominate the growth in imports with a 27 percent uptick in H1 2021 compared to H1 2020 (+8.5 MT) and consistent increases in the last two quarters (+ 4.7 MT in Q1 2021 vs Q1 2020, +3.8 MT in Q2 2021 vs Q2 2020).

JKT imports are also up 8 percent (+5.2 MT) over H1 2021 with growth in both Q1 (+3 MT) and Q2 (+2 MT). Imports from the rest of Asia are now up 4 percent (+1 MT) over H1 2021, reversing a Q1 decline (-1 MT) with a Q2 increase (+2 MT). European LNG imports are down 19 percent (-9.6 MT) in H1 2021 compared to H1 2020.

  • Total LNG demand (last 12 months): 366.9 mtpa
  • LNG shipping intensity (last 12 months 2,004 BTMi

Snapshot of European natural gas flows

Over H1 2021, production levels declined by 2 bcm (-8% ) compared to H1 2020 and were offset by increases in pipeline entries (+17 bcm, 14%) split equally across Q1 and Q2. Imports from Algeria rose by 174 percent or 12 bcm over H1 2021, while Russian piped imports were up 7 bcm (11%). Imports from Norway dropped by 4 bcm (-10%) in the same period. LNG withdrawals were down 8 bcm (18%) over H1 2021.

Storage contributed an additional 18 bcm of supply through a combination of higher storage withdrawals (+10 bcm over H1 2021 vs H1 2020) and lower storage injections (-8 bcm over H1 2021 vs H1 2020). Storage levels are now 19 bcm below the 2018-2020 average and stand at less than 50 percent full.

Demand across Europe is up 30 bcm or 16 percent over H1 2021 with one third of the increase coming from Germany (+11 bcm, +23%) and 25% of the increase from North West Europe (+7 bcm or 15%).

  • Total EU gas demand (last 12 months): 394.4 bcm
  • Total EU pipeline imports (last 12 months): 256.3 bcm
  • Gas storage utilization (and volume): 48% (47.4bcm)

Energy Insights tracks the exports, imports, and flows of global gas and LNG in real time. Download our latest market updates below.

Connect with our Oil & Gas Practice