Sept. 4 (Bloomberg) -- Europe won’t increase its imports of liquefied natural gas next year because demand in Asia will absorb new supply, according to Barclays Plc.
Global LNG supply is forecast to grow by 900 million cubic feet a day in 2014 as four liquefaction projects start operating, Biliana Pehlivanova, a New York-based analyst for the bank, said in an e-mailed report dated yesterday.
“Global regasification capacity is set to grow by 2.8 billion cubic feet a day next year, with all but one terminal located in Asia,” Pehlivanova said.
Asian demand will be led by China, where five new regasification plants are set to start by the end of 2014. India, Malaysia, Indonesia and Singapore are also forecast to increase LNG imports, Barclays said.
There are “risks” that demand my decrease in Japan and South Korea, as both nations plan to restart nuclear plants. according to Pehlivanova.
“For South Korea, this is likely to affect consumption later this year and next,” Pehlivanova said. “For Japan, effects on consumption are likely to be limited until 2015.”
The tightness in global LNG markets may peak next year, according to Barclays.
To contact the reporter on this story: Chou Hui Hong in Singapore at firstname.lastname@example.org
To contact the editor responsible for this story: Alexander Kwiatkowski at email@example.com