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
27 February 2026
LNG would serve as a backup supply source as domestic gas declines and the country’s energy system comes under stress during periods of low hydropower output and high energy demand
27 February 2026
The assumption that oil markets will re-route and work around sanctions is being tested, and it is the physical infrastructure that is acting as the constraint
27 February 2026
The 25th WPC Energy Congress to take place in tandem as part of a coordinated week of high-level ministerial, institutional and industry engagements
27 February 2026
The deepwater sector must be brave by fast-tracking projects and making progress to seize huge offshore opportunities and not become bogged down by capacity constraints and consolidation
