LNG Market Outlook

Published 04/20/2016 by Peter Stewart

Oversupply likely out to around 2020 but this will be managed by lower utilisation, FID delays for new projects, slower ramp-ups

Prices to remain depressed but potential for US LNG to act as cap to prices if oil market recovers

Large volumes of US LNG held by portfolio players. Volumes are free destination and so will be driven by arbitrage

Pricing of LNG will become more flexible, shorter-term contract terms, more frequent break clauses

European demand looks unlikely to be a significant driver unless gas in transport takes off or carbon prices rise significantly (unlikely for now)

Middle East and Latin America look likely to be the key markets for US LNG in near term.

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