Rystad Energy, however, noted that after 2024 project approvals are expected to decline as governments move closer to low-carbon energy infrastructure.
“Recent price surges in natural gas markets worldwide have somewhat constrained gas demand, triggering a resurgence of coal-fired power generation in many countries,” Palzor Shenga, vice president of analysis, Rystad Energy, said.
“However, governments remain bullish on gas as an affordable, transition fuel for power in the coming years as demonstrated by the rapid growth in LNG infrastructure investments.”
Rystad Energy noted that new projects in LNG are mainly driven by short-term increases in demand in Europe and Asia.
In 2022 and 2023, investments are expected to remain flat with only $28b and $27b worth of projects approved in 2021 and 2022.
Investments in 2023 will likely see a slight increase to almost $32b. This is seen to peak at $42 billion in 2024.
“After this date, investments will decline and drop back near 2020 levels to reach $2.3 billion in 2029,” the report read.
“Despite an expected jump in 2030 when project announcements are forecast to total nearly $20 billion, investment in greenfield LNG is unlikely to ever return to 2024 levels as countries scale up investments in low-carbon technologies.”
