LNG: gloomy now, brighter soon
LNG producers must have faith. The glut will pass and the market will need their gas
THE WORLD wanted more liquefied natural gas; the market responded. The wave of new supply, expected for years, is upon us. Global LNG export capacity is now 352.54m tonnes a year (t/y) and will rise to 357.84m t/y by the end of 2016; and 452.11m t/y by 2020, according to Petroleum Economist's Interactive World LNG Map. Supply will have risen by almost 30% in the space of five years. Combined with weaker-than-expected demand in Asia and the oil-price slump, the supply abundance has depressed LNG prices - and changed the market. Consumers are in charge, demanding new flexibility in their purchase contracts and, above all, cheaper gas. Less gas than expected is heading to Asia; more than expec
Also in this section
22 April 2026
The failure of OMV Petrom’s keenly watched exploration campaign at Bulgaria’s Han Asparuh block highlights the Black Sea’s uneven track record, despite major successes like Neptun Deep and Sakarya
22 April 2026
Sustained strikes on ports, terminals and refineries are testing the resilience of Russia’s oil export system, yet rapid repairs, rerouting and surging prices mean the campaign has yet to deliver a decisive blow
21 April 2026
After overcoming a COVID-induced demand collapse with several years of successful market management, geopolitical events have conspired to provide the pact’s biggest test to date
21 April 2026
The regime’s policy of using nuclear ambiguity as a deterrent may have failed but it has realised it has other cards to play, while its neighbours are reappraising their approach to security
