LNG markets poised for a volatile 2015, BG Group says
Source: AFR, 6 Mar 2015
Global liquefied natural gas player BG Group has forecast a volatile LNG market in 2015 because of "lumpy" additions to supply, mostly due to new Australian projects.
BG noted that after four years of supply "hiatus", with little net growth in global production, Australia was set to add some 58 million tonnes a year of capacity by 2019, from its seven projects under construction.
The new Australian plants, one of which belongs to BG, account for almost a half of the 122 million tonnes a year of new supply capacity due to hit the market by 2020.
This year alone, five new LNG production units, or "trains", are likely to start up, adding 21 million tonnes a year, mostly in the second half, BG said in its annual LNG outlook report.
The new supply will drive a 3 per cent increase in global LNG trade to 250 million tonnes a year this year.
On the demand side, 12 new LNG import terminals and one expansion are due to start up, introducing six new countries as LNG importers: Egypt, Jordan, Pakistan, Philippines, Poland and Uruguay.