Glimmers beyond the glut
Global exports are heading for a hefty surplus. It will take a brave developer to sanction a sizeable new plant without lining up buyers first
The gas liquefaction construction boom is here—millions of tonnes of capacity are coming on stream over the next two or three years from the US to Malaysia, the Russian Arctic to Australia. But it's not going to last. With supply poised to outstrip demand, some developers are delaying final investment decisions (FIDs) on fresh capacity until a rebalancing of the LNG market is in sight—and that is unlikely to happen before the early-to-mid-2020s. More than 140m tonnes a year of global LNG capacity is due to be added between the start of 2016 and end-2019, with 51m t/y scheduled to start up this year alone, according to Energy Aspects, a consultancy. Much of this originates from Australia—whic
Also in this section
26 April 2024
While the US has been breaking records for its premium grade crude, there are doubts over whether you can have too much of a good thing
26 April 2024
Slowing demand growth and capacity expansions will squeeze refiners in coming years
25 April 2024
Some companies with assets in Israel have turned towards Egypt as tensions escalate, but others are holding firm despite rising tensions
24 April 2024
But even planned exploration activity is unlikely to reverse declining output from mature fields