Global Liquefied Gas Market Faces Potential Oversupply
This article is for subscribers only.
Energy companies rushing to ship liquefied natural gas to Asia face a familiar pitfall in the boom-bust cycle of commodity prices: the potential for too much supply.
With plans for dozens of the multibillion-dollar export terminals in North America alone, the industry is headed toward an overbuild that may depress Asian prices for a decade, according to a Rice University analysis. Capacity from proposed North American LNG terminals is more than triple the forecast growth in Asian gas demand by 2020, data from HSB Solomon Associates LLC’s Ziff Energy Group show.