READING, England, March 18 (UPI) -- British energy company BG Group said Tuesday demand for liquefied natural gas globally is expected to outpace production for the long haul.
"Limited supply growth in 2013, the prospect that overall production will remain stalled in 2014 and strong demand growth in Asia suggests the global LNG market will continue to tighten, in line with our long-held view," BG Group Vice President for Global LNG Markets Andrew Walker said in a statement.
Walker said the European economy last year received about 35 million tons of LNG, the lowest volume in nearly 10 years. He said that was in part because supplies were diverted to Asian and Latin American economies, where demand was increasing.
Pipeline deliveries of natural gas increased last year in Europe, he added.
BG Group, which published its annual overview for the LNG market Tuesday, said 67 million tons of new capacity from Australian projects could mark the "next major wave" of production, but the outlook for supplies for the year was dim.
BG Group said it expected global LNG demand to grow at a compound rate of 5 percent to 2025, twice as fast as the market demand for gas overall.