Baku, Azerbaijan, Sept.5
By Leman Zeynalova – Trend:
The global liquefied natural gas (LNG) is expected to reach the bottom in 2020, Trend reports with reference to Wood Mackenzie research and consulting company.
“Having weathered a significant oversupply, many are asking if this summer marked the bottom of the LNG commodity cycle. We think not. The market still isn’t fully through the five-year supply wave of Australian, Russian and US projects, prompting the worst oversupply since the 2009 downturn,” said the company.
In the US, as many as six new trains are expected to become commercially operational this winter, putting further pressure on next summer’s balance. In Europe, large storage injections have created an inventory overhang that looks increasingly likely to go into 2020, according to the Wood Mackenzie analysis.
“And Asia, traditionally the engine for global LNG demand growth, faces headwinds in all three of its largest LNG markets – Japan, South Korea and China. We expect the market to reach a bottom in summer 2020 – followed by a moderate recovery through the latter part of 2021. And from the current position of low prices, there looks to be a number of price upside risks starting to emerge.”
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