Global LNG overhang is not done yet
Gas prices may struggle to move significantly higher in 2020, despite a recent bounce
Rising gas prices and surging freight encouraged predictions that LNG’s bear run is over in the latter months of 2019. Even long-dormant US Henry Hub prices sprung to life on forecasts of colder-than-normal November weather. However, while seasonal gas demand recovery is likely, there is little sign short-term demand growth can fully absorb substantial new LNG supply due from the ramp-up of 2019 start-ups and new projects due in 2020. Moreover, weak year-to-date demand in 2019 has allowed consumer market inventory to build ahead of peak winter demand. So, while gas prices may strengthen seasonally, a step-change higher currently looks unlikely. Freight jump LNG freight rates have also surg
Also in this section
14 May 2024
But there is still plenty of appetite for the country’s LNG in the Asia-Pacific region
14 May 2024
The former CEO of Pioneer, Scott Sheffield, has opened a can of worms through his association with OPEC+ and its market management strategy
13 May 2024
OPEC+ has huge amounts of spare capacity amid a tightening market, but nothing can be taken for granted given unclear economic trajectories and geopolitical unrest
13 May 2024
But optimism about island nation checked by competition around African upstream investment and history of false dawns