LNG short-term trade and price outlook (Q4 2019)

The year 2019 has seen Asian spot LNG prices more than halve to eventually bottom out at an all-time low of $4.3/mmbtu in September. Many factors contributed to this, although low prices were largely a function of the ramp-up of new LNG supply, pushing large volumes of gas into the liquid, and increasingly saturated, European market. Now that the anticipated LNG oversupply has become a reality, we look at some interesting dynamics yet to play out: • Ukraine transit uncertainty vs. high European inventory • Price pressure on European gas market over next 24 months • Rising cash pressure on US tollers and offtakers • Accelerated anti-coal sentiment Find out how the global LNG market will balance over the next two years and what the implications are for prices.