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