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Demise of LNG?
We tend to think of oil, natural gas, liquefied natural gas (LNG), coal and nuclear energy as separate markets. Domestically, and in the short term, this is true. However, globally, and in the long term, these are all interrelated. Economists correctly contend that when a commodity’s price changes, it affects the prices of compliments and… Read More
Shifting LNG Economics
The shale revolution flooded the domestic natural gas market with large volumes which in turn led to stagnant prices. Consequently, U. S. gas producers have long seen Asian LNG markets as a highly lucrative alternative. Predictably, a number of LNG projects were approved and are under construction. “World Oil” reports that the Chenerie Energy Inc.… Read More
Soft Global LNG Demand
“World Oil” cites analysis by the consulting group, Wood Mackenzie, which indicates that in spite of weak demand and possible oversupply, a large number of additional LNG projects are still being considered. This is in stark contrast to 45 major upstream project cancellations. Current global LNG capacity is around 250 million tons per annum (MMtpa)… Read More
LNG Growth
“World Oil” cites a recent report by Global Data which projects global Liquefied Natural Gas (LNG) capacity more than doubling by 2019. Current capacity of 341 million tonnes per year (mtpa) is expected to grow to 811 mtpa based on projects already scheduled for construction. This global trend is led by unprecedented growth in North… Read More
LNG Awakens Gas Market
There are many reasons why domestic natural gas prices have been sluggish. However, primary among them is the Marcellus shale which lies beneath Pennsylvania, Ohio, West Virginia and New York. Huge reserves, flexible production rates, and proximity to major markets have all helped the play to act as a damper on gas prices. Even seasonal… Read More
