• 4 minutes THE GREAT OIL PRICE PREDICTION CHALLENGE OF 2018
  • 9 minutes Time For Reaction: Trump Presses OPEC to Reduce Prices as Crude Trades Near $80
  • 15 minutes Nothing new in Middle East? Iran Puts On 'Show Of Strength' Military Exercise In Gulf
  • 3 hours So oil touched $80! (WTI break $71 twice). What does the future hold?
  • 4 hours Global Hunger Continues to Grow Driven By Climate Change
  • 5 hours China Tariff Threatens U.S. LNG Boom
  • 7 hours Why Are the Maldives Still above Sea Level?
  • 5 hours Praise for Alberta
  • 8 hours Downloadable 3D Printed Gun Designs, Yay or Nay?
  • 13 hours Freedom Of Internet: Google Plans Censored Version Of Search Engine In China!
  • 2 days Transition Time: Volkswagen Announces "Electric for All" Campaign
  • 2 days Robots Roam the Seafloor Looking for Mineral Resources
  • 1 day Toyota Agreed To Add Android Auto To Its Vehicles
  • 12 hours Lack of Global Warming Messes with Russian Arctic LNG Plans
  • 2 days Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 2 hours Saudi Aramco IPO Seems Unlikely
  • 18 hours Regime For Regime: China Says Willing To Provide Venezuela With What Help It Can
  • 2 days Impeachment and stock market
Alt Text

Maduro Seeks New Funding On Visit To China

Venezuela’s Nicolas Maduro is meeting…

Alt Text

Are Flying Taxis Just 4 Years Away?

A British entrepreneur’s unicorn startup,…

Alt Text

Cyber Threats Are Mounting For U.S. Energy

Cybercrime is on the rise…

Editorial Dept

Editorial Dept

More Info

Trending Discussions

Global Energy Advisory - 13th July, 2018

Refinery

U.S. LNG producers are racing to add production capacity amid forecasts for strong growth in demand, with the total—concentrated in Louisiana and Texas—set to reach 10 billion cubic feet daily by the end of next year, from about 4 billion cubic feet a day today. And yet, all this capacity will not be enough to prevent the supply crunch that has been predicted by Shell.

The crunch will be a result of a shortage in final investment decisions on new LNG capacity in the United States, which is shaping up as the largest emerging LNG exporter globally. And the shortage of FIDs itself is a result of producers’ uncertainty about future demand. This uncertainty has pushed them to be creative as buyers begin to shy away from long-term, fixed-price contracts, opting for shorter deals.

So, U.S. LNG producers began offering buyers low-priced LNG in exchange for investing in the construction of the liquefaction trains that will produce this LNG. The approach is working and has helped Cheniere Energy and its sector players secure future supply. However, even that won’t be enough if demand continues to grow so strongly.

By 2025, Cheniere has warned, the world will need an additional 10.5 billion cubic feet daily in LNG capacity. By 2030, another 16.4 billion cubic feet daily will need to be added. But long-term contracts that fund new capacity will continue to get harder to secure as buyers continue to prefer shorter deals and the spot market.

The…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





Oilprice - The No. 1 Source for Oil & Energy News