LNG: Churning it out
Producers face a further period of low prices as more production comes online
The liquefied natural gas market of 2018 will bear many similarities to the present one. The market in 2017 remained in a period of LNG oversupply that began in 2016. Although the year opened with strong demand, due to low winter temperatures and nuclear outages, forcing Asian spot prices to near $10 per million British thermal units, we saw prices return to pre-winter levels in all major regions in March. As warmer weather returned and the seasonal demand fell, it became evident that the favourable market for LNG suppliers of the early 2000s had led supply to catch up and overtake demand. Even though the winter temperatures have brought back high demand, the supply glut is expected to ret
Also in this section
2 June 2025
More than anything else, weak Chinese gas demand is providing relief to EU consumers, but it is uncertain how long this relief will last
30 May 2025
Energy majors argue transition debate has started to factor in the complexities of demand shifts and the wider role for gas
29 May 2025
Sovereignty is the watchword for the new government, but there are still upstream opportunities for those willing to work closely with the state
29 May 2025
A cautious approach to coal-to-gas switching offers lessons to others who are looking to balance cost with cleaner energy
