for LNG Markets
Japan plans to halve its LNG consumption – disrupting the plans of LNG exporters worldwide.
LNG prices in northeast Asia are up more than 80 percent in just two weeks, capping off a wild bust-to-boom swing in a little over six months.
Oil prices are on the mend, but the global LNG market continues to wallow in oversupply.
LNG prices are set to tumble as a raft of new projects come online, but a tighter market is expected in the 2020s as project developers face questions on the next tranche of export projects.
Together, Australia, Qatar, and the U.S. will account for 60 percent of global LNG capacity by 2023. Meanwhile, China will dominate demand growth going forward, importing increasing volumes of LNG to replace coal-fired electricity and coal-burning furnaces.
Rising imports from China are helping to reduce the large surplus of supply, and LNG prices are rising again, marking an end to a several-year downturn in the market.
The severe decline in investment in new LNG export capacity due to the price downturn that began in 2014 could precipitate supply problems in the 2020s, mirroring similar trends in the crude oil market.
The growing oversupply in LNG export capacity has weighed on prices for the key market in Asia, pushing spot prices down by about two-thirds in less than two years. Excess supplies will likely kill off an array of LNG export terminals that have not yet moved forward with final investment decisions.