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LNG price spurt: It will wear off soon
Jan 25:
LNG prices did spurt towards the end of 2017 and the so far prices look like they are going to stay high for some more time
8But not for too long.
8After a winter of record high LNG prices, the market is bracing again for a year of structural oversupply, as the strength of China and emerging Asian markets seems insufficient to bridge the gap between growing global supplies and declining consumption among legacy Asian buyers such as Japan, Taiwan and Korea.
8Global supply capacity growth is expected to outpace demand growth in 2018, with 31.8 million mt/year of new capacity due to come online, versus a forecast global demand growth of 23.3 million mt year on year.
8For 2018, more than 50% of the new incoming supply capacity will come from Australia, with 2018 startups largely expected towards the start and end of the year.
Click on Reports for more
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8But not for too long.
8After a winter of record high LNG prices, the market is bracing again for a year of structural oversupply, as the strength of China and emerging Asian markets seems insufficient to bridge the gap between growing global supplies and declining consumption among legacy Asian buyers such as Japan, Taiwan and Korea.
8Global supply capacity growth is expected to outpace demand growth in 2018, with 31.8 million mt/year of new capacity due to come online, versus a forecast global demand growth of 23.3 million mt year on year.
8For 2018, more than 50% of the new incoming supply capacity will come from Australia, with 2018 startups largely expected towards the start and end of the year.
Click on Reports for more
