A wave of new LNG is about to hit the markets [Gas in Transition]

A wave of new LNG is about to hit the markets [Gas in Transition]

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Natural Gas News
A wave of new LNG is about to hit the markets [Gas in Transition]

Summary

This strong increase in LNG production capacity will ease gas supply concerns and prices. It is expected to make natural gas a buyers’ market. [Gas in Transition, Volume 3, Issue 11] by: Charles Ellinas

A headline in International Energy Authority (IEA)’s Global Energy Outlook 2023, released at the end of October, was: “A wave of new LNG export projects is set to overturn gas markets.” The IEA says that more than 250bn m3/yr of new liquefaction capacity is set to come online by 2030, about 40% of today’s global LNG supply, with the US and Qatar accounting for 60% of this (see figure 1). The largest increases will come between 2025 and 2027. Most of this is destined for Asia. China alone has contracted for an additional 85bn m3 of LNG since 2022. As the IEA points out, “in recent years, gas markets have been dominated by fears about security and price spikes after Russia cut supplies to Europe. Market ba...