LNG Golden Promise Fading for Goldman on Wave of Oversupply
- Bank cuts 2016 LNG East Asia spot price forecast by 13%
- New LNG in Australia, U.S. push market further into oversupply
This article is for subscribers only.
Liquefied natural gas is cheap, and according to Goldman Sachs Group Inc. it’s only going to get cheaper.
A wave of new supply from Australia to the U.S. is deepening a glut of the fuel, raising the risk of losses for exporters and prompting some buyers to look at breaking contracts with suppliers, according to the Wall Street bank, which cut its forecast for prices in Asia next year by 13 percent. LNG will probably drop a further 23 percent by 2018, Goldman said.