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BofA Sees Global LNG Entering Multiyear Bear Market on Supplies

Global liquefied natural gas prices will enter a “multiyear bear market” as production outpaces demand, according to Bank of America Corp.

Supplies of the super-chilled fuel will rise as projects start in Australia at the turn of this year and U.S. plants begin exports by the end of next year, Sabine Schels, head of fundamental energy strategy at the bank, said at a press briefing at the bank’s offices in London today. LNG production may outstrip demand by 10 percent by 2020, according to consultant Berkeley Research Group.