Market oversupply and new LNG FID progress

LNG was thrust into the mainstream during 2022, grabbing headlines and the attention of some of the world’s most senior figures. It became more valuable than ever; prices sky-rocketed and cargoes exchanged hands for more than US$250M. Demand was significantly stronger in Europe, but flat-lined in Asia. Fluctuations in global LNG production moved markets – every available drop was significant. The world’s media, politicians, economists, and general public all paid close attention to the LNG industry during 2022. In this insight, we recap on the year’s most significant developments.

With population growth and economic development leading to strong growth in electricity demand, central Mexico began to need new energy supplies in the late 1990s and early 2000s. With declining North American gas production, LNG emerged as a cost-competitive option. The first proposal for the Altamira terminal was announced by Shell and El Paso Energy in June, 2001. El Paso pulled out of the venture in 2003, but Shell chose to continue development, with Total acquiring a 25% stake in ...