• 4 minutes Trump will meet with executives in the energy industry to discuss the impact of COVID-19
  • 8 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 11 minutes Why Trump Is Right to Re-Open the Economy
  • 13 minutes Its going to be an oil bloodbath
  • 1 min "Saudi Armada heading to U.S.", "Dumping" is a WTO VIOLATION.
  • 2 hours Cpt Lauren Dowsett
  • 48 mins Trump will be holding back funds that were going to W.H.O. Good move
  • 5 hours Death Match: Climate Change vs. Coronavirus
  • 26 mins Washington doctor removed from his post, over covid
  • 56 mins Which producers will shut in first?
  • 3 hours Free market or Freeloading off the work of others?
  • 4 hours ‘If it saves a life’: Power cut to 1.5 million Californians
  • 6 hours US Shale Resilience: Oil Industry Experts Say Shale Will Rise Again
  • 8 hours Ten days ago Trump sent New York Hydroxychloroquine. Being administered to infected. Covid deaths dropped last few days. Fewer on ventilators. Hydroxychloroquine "Cause and Effect" ?
  • 8 hours Russia's Rosneft Oil is screwed if they have to shut down production as a result of glut.
  • 6 hours How to Create a Pandemic
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Shell Sees LNG Market Returning To Balance By 2021

The supply growth of liquefied natural gas (LNG) on the global market is set to slow down later this year and in 2021 when the last of the new projects currently under construction will be completed, Shell said in its latest LNG Outlook 2020 published on Thursday.

From the second half of this year, Asia will absorb the excess supply and Europe will stop being the ‘balancing market’ to absorb the supply growth coming from new projects in the U.S. and Australia, according to Shell, which has one of the strongest LNG trading businesses among the oil majors.

“Europe absorbed the majority of 2019 supply growth as competitively-priced LNG furthered coal-to-gas switching in the power sector and replaced declining domestic gas production and pipeline gas imports,” Shell said in its outlook today. 

LNG imports in Asia grew modestly in 2019 compared to the previous two years due to milder winters and increased electricity generation from nuclear power in the major LNG importers Japan and South Korea, Shell noted.  

“In the short-term, supply growth is expected to slow down as the last of the new LNG projects under construction will be completed by 2021, restoring equilibrium,” the supermajor said.

Over the past few months, LNG prices hit a decade low due to warmer winter weather in many parts of Asia, booming new LNG supply, and slower import growth in China.

Last week, spot LNG prices in Asia plunged to a new all-time low of $2.70 per million British thermal units (MMBtu), down by $0.25 from a week earlier, due to low demand from China amid the coronavirus outbreak, industry sources told Reuters on Friday.

“While we see weak market conditions today due to record new supply coming in, two successive mild winters and the Coronavirus situation, we expect equilibrium to return, driven by a combination of continued demand growth and reduction in new supply coming on-stream until the mid-2020s,” Maarten Wetselaar, Integrated Gas and New Energies Director at Shell, said in a statement.

In the longer term, Shell expects global LNG demand to double to 700 million tons by 2040.

By Tsvetana Paraskova for Oilprcie.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage






Leave a comment

Leave a comment




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