The LNG supply glut may diminish sooner than expected as a result of potential slips to liquefaction project schedules and increased demand in the wake of the Japanese quake.
Market players at this week’s Gastech conference said a shift in the supply-demand balance may even create challenges for LNG producers aiming to meet fast-growing requirements.
Analysts expect the LNG trade to reach 350 million tonnes per annum in 2020 from the current 240 million tpa, but BG Group senior vice president Betsy Spomer said sanctioned projects to date leave a 70 million tpa shortfall.
