LNG Supply Tight Until 2016

by Ship & Bunker News Team
Monday November 3, 2014

Outages of production trains around the world and increased demand in the winter months will keep liquefied natural gas (LNG) supply tight through to 2016, IHS Maritime 360 reports

The surge in LNG demand first began following the closure of the Fukushima nuclear power plant following the 2011 earthquake in Japan

Since then, demand in China, India and Southeast Asia has also risen. 

"The supply-demand balance will depend on new supply from Australia and the return of nuclear power in Japan," said IHS Energy Insight director Tony Taylor

LNG projects are current in the works in Australia, North America Russia and possibly East Africa, though supply won't become available until after 2016. 

It is estimated that total LNG supply could rise to over 1.1 billion tonnes if those projects pan out. 

"Balance will return to the market post-2016, as new Australian LNG supply pushes volumes from the idle East and Atlantic out of the Asian markets," said Taylor.

"Over the long term, there might be competition among suppliers."

Demand however, will remain secure. 

Indonesia's state oil and gas company Pertamina said earlier this month that LNG demand in the country is expected to double by 2020.