Volatile outlook predicted for LNG market
The outlook for the global LNG market in 2015 will be marked by increasing volatility, according to UK-based BG Group’s annual global LNG market outlook report.
The market is suffering from the after-effect in 2014, with limited growth year on year despite four new liquefaction trains that represented a total capacity of 16 million tonnes per annum at the end of 2014. Moreover, the spot-price rally towards the end of 2014 was cut short by the falling oil prices, while LNG demands were slower than expected in South Korea and China, probably due to seasonal and structural issues.
Andrew Walker, BG Group vice-president of global LNG, forecasts “good growth” in LNG imports into Asia in 2015. However, he stated that some key influences will continue to impact the market, such as the rate of the return of Japanese nuclear power plants, economic growth rates for China and South Korea, and the six new markets – Egypt, Jordan, Pakistan, Philippines, Poland, and Uruguay – that will start importing in 2015.
Walker told IHS Maritime in a media briefing today that the supply of LNG in 2015 will be high in view of the “supply wave” ramping up in Australia and the United States. In addition, the industry expects five new liquefaction trains and one floating LNG production facility to begin operations in 2015.
source:www.ihsmaritime360.com