The recent annual flagship reports for the LNG industry pointed to intensifying activity in the global market in 2018 with strong demand growth and rising prices This has supported a sharp increase in the number of new supply projects being approved in addition to the large supply increases already under construction Softer prices in 2019 raise the question: is the market likely to become oversupplied? We look at the new projects expected to come on stream right out to 2026. Given the long lead time of LNG projects (5+ years), this is a fairly known quantity. For all the new capacity to be fully utilised by 2026, we estimate that demand growth would need to run at around 6% per year Given that utilisation is currently around 80% and demand growth has been running at 10%+ for the last 2 years, it looks like there is still room for more players in the global LNG market Read the rest here or download the pdf at the following link: 20190425 – MENA Advisors – Global LNG market dynamics are strong in the long term, despite softer prices Global LNG market was strong in 2018 According to the IGU’s 2019 annual report, the global LNG market had a good year in 2018. LNG trade grew 10%, following on from strong growth of 12% in 2017. In particular, demand from Asia (mainly China and South Korea) grew strongly as the region looks to natural gas to reduce the negative impact on air quality……...
Like what you see?
Sign up for our premium membership to access our premium content.The first month is on us. Cancel at anytime. Sign Up Now