RIM Market News >  Asian Viewpoints

LNGgc Asia in Singapore pessimistic about market in 2019

2019/03/29 12:00

 

Market participants for liquefied natural gas (LNG) observed that oversupply might not be resolved by 2019. Rim intelligence asked industry players about their views at the LNG International Conference (LNGgc Asia) held in Singapore from Feb 27 to 28.

 

This year, supplied increased with the startup of new projects but demand could not keep up with production. However, many participations viewed that by 2025, there would be a shortage of gas. The reason is that the number of final investment decisions (FID) in 2016 for 2018 was extremely small due to the weak market condition.

 

From around mid-2024 there may be end-users that could not meet their needs. Against this background, there is an increase in Asian demand and the conclusion of long-term contracts, which had seen a slowdown, was picking up speed again.Regarding the spot market in Northeast Asia in 2019, a major consulting forecast that the price may be $5-6 even during the demand season. Many forecasted 5 to 10 FIDs in 2019. Production from the United States, Qatar, Russia and Mozambique is drawing attention.

 

In addition, there are concerns that imports by China, which has shown a rapid growth in LNG imports since 2016, may shrink in 2019. "In China, a slowdown in economic growth may lead to a decline in LNG imports," said a major shipping company. But there are views that LNG demand as a whole will continue to increase as demand in South Asia and Southeast Asia is expanding.

 

 

Tokyo : Energy Desk  Satoshi Hagimoto  +81-3-3552-2411
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