Commodity Market Report
Global Gas Service Highlights H1 2019: Welcome to the LNG price roller coaster!
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*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
The much anticipated LNG oversupply has finally materialised. With 38 Mt of new LNG supply this year, there was always going to be too much for the market to absorb. European prices have crashed as a result, dragging Asian LNG prices down too. And with European hub prices now trading below US$3.5/mmbtu, the market is very finely balanced making the risk of US LNG under-utilisation a reality. Post-2020 the market will change quickly. A lack of LNG investment decisions from mid-2015 to mid-2018 means that over 2021 to 2024 there will be limited LNG supply growth. But despite current low price, momentum behind new LNG projects continues unabated which will drive another influx of new supply in 2027 and set off a new price cycle. Read the H1 2019 Global Gas Highlights for our latest views on: - When oversupply will end - Where we see demand growth in the mid to long-term - Which projects will take FID in the next wave of LNG supply - And what all this means for the LNG price rollercoaster
Table of contents
- LNG spot prices on a roller coaster
- The next LNG supply boom
- Asian LNG demand – a long term growth story
- Europe needs more gas imports - will Russia prioritise LNG as pipeline options become increasingly challenging?
- North America – Delayed dry gas drilling and expanded low-cost resource base keep Henry Hub prices lower for longer
- Lower Long Term LNG Prices
Tables and charts
This report includes the following images and tables:
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Russia pipe and LNG imports into EuropeGlobal gas pricesLNG project sanction by year
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Year-on-year LNG supply changeAsia LNG demand growth change (2018-2040)Europe gas imports by sourceRussia pipeline capacity to EuropeGlobal gas prices
What's included
This report contains:
