• 3 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 5 minutes Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 9 minutes This Battery Uses Up CO2 to Create Energy
  • 12 minutes Shale Oil Fiasco
  • 3 hours Historian Slams Greta. I Don't See Her in Beijing or Delhi.
  • 9 hours We're freezing! Isn't it great? The carbon tax must be working!
  • 1 day Indonesia Stands Up to China. Will Japan Help?
  • 20 hours US (provocations and tech containment) and Chinese ( restraint and long game) strategies in hegemony conflict
  • 8 hours Beijing Must Face Reality That Taiwan is Independent
  • 1 day Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 1 day Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 22 hours Might be Time for NG Producers to Find New Career
  • 2 days Phase One trade deal, for China it is all about technology war
  • 18 hours Trump has changed into a World Leader
  • 2 days Anti-Macron Protesters Cut Power Lines, Oil Refineries Already Joined Transport Workers as France Anti-Macron Strikes Hit France Hard
  • 2 days Angela Merkel take notice. Russia cut off Belarus oil supply because they would not do as Russia demanded
Ross McCracken

Ross McCracken

Ross is an energy analyst, writer and consultant who was previously the Managing Editor of Platts Energy Economist

More Info

LNG’s Downstream Glitch

Tanker

A slowing Chinese economy and upcoming elections in India could both impact a hitherto robust demand outlook for the LNG industry, which currently occupies an enviable place in the energy universe. Demand growth has been on a substantially higher trajectory than any other hydrocarbon when compared with global GDP or the slowdown in international trade. LNG is on a virtuous relatively low-priced path of expansion in which its primary competitors are coal and oil products.

Global LNG supply has grown by nearly 30 percent over the last three years. Rather than resulting in a much-predicted glut, it has been absorbed by coal-dominated economies, principally China, in an effort to reduce both local air pollution and global carbon emissions. This is resulting in a new wave of project FIDs (final investment decisions), which should keep LNG pricing competitive.

While the industry has focused on the potential of new markets in transport, with some justification, these to a large extent remain icing on the cake in comparison to the potential for industrial gas demand, including fertilizer and petrochemicals, and the expansion of city gas use in Asia. This demand should be underpinned by coal-to-gas switching in the power sector in both Europe and North America, despite the growth of renewable energy sources.

Reactive demand

A key reason for the underestimation of LNG demand has been the change in investment cycle times brought about by Floating, Storage and…




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