Gas Processing & LNG is Produced by Gulf Publishing Holdings LLC



Editorial Comment

Global gas is facing a demand hit from the coronavirus pandemic and a structural oversupply in the LNG market following the startups of new LNG export projects in Australia and the U.S. At present, 2020 is looking to be a rough year for LNG projects seeking FIDs, particularly those projects with final decisions delayed from 2019—which was itself a record year for LNG FIDs. However, strategists have warned that balking at too many prospective LNG projects will undermine supply/demand fundamentals in the next decade. The crisis surrounding the pandemic could serve as more of a balancing mechanism for LNG supply rather than a bottleneck—over the medium-term, at least. After the 2020s, however, more LNG will be required to meet continued growth in Asia’s burgeoning economies.

Worldwide, 19 large-scale LNG projects had been looking to secure FID in 2020, but nearly all of them have pushed their decisions to 2021 or later. Collectively, these 19 projects would add more than 200 MMtpy of new LNG supply between 2024 and 2027. Around one-third of these projects are located in the U.S. If the economic fallout from the pandemic-fueled collapse in oil prices delays FIDs for most of the undecided U.S. projects, it could mean far less LNG traveling from the U.S. to Asia in the second half of the decade. On top of depressed oil prices, failure by exporters to secure supply agreements with key Asian buyers, such as China and India, may challenge several of the tentative U.S. projects. Other delayed LNG projects could be effectively canceled unless they reach positive FID by mid-2021 amid improving economic conditions. GP


Copyright © 2019. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo

FEATURED COLUMNS

Editorial Comment
-Adrienne Blume
Between mid-2019 and mid-2020, the amount of LNG terminal capacity in construction around the world more than doubled.
Executive Viewpoint: Excelerate Energy sees huge new-market potential for FSRUs
-Cal Bancroft
Excelerate Energy is a pioneer and market leader in floating LNG regasification solutions.
Executive Viewpoint: Midstream seeks cost-effective, “fit-for-purpose” solutions amid downturn
-Gregory L. Hall
BCCK Holding encompasses BCCK Engineering Inc., an international natural gas engineering company specializing in nitrogen rejection, nitrogen rejection for landfill gas, NGL recovery, CO2 removal, helium recovery, skidded LNG plants and oxygen removal.
Regional Focus: The role of small-scale LNG in Russia’s energy agenda
-Lorenzo Micucci, John Motta
A number of factors are challenging Russia’s position in the energy markets: the change in the global natural gas landscape, the abundance of gas, expanding LNG trade, and the increased interconnectivity among pipeline systems that makes possible reverse flows.


GasPro 2.0: A Webcast Symposium

View On-Demand

Following the successful GasPro Webcast Symposium in October 2019, the third GasPro Webcast Symposium will take place on October 21, 2020.

The 2019 webcast drew attendees from around the world, with more than 80% of the audience working in company management or engineering divisions.

The 2020 web event will gather experts in the fields of LNG, gas processing and process safety to share market, operations and engineering technology and trends with our audience.

Attendees of the 2020 webcast will learn about market solutions and technology deployments in a number of areas: LNG delivery infrastructure, small-scale desulfurization for NGL, H2S removal for gas treating, process safety for safety instrumented systems, small-scale LNG project design, and advances in freeze component removal for LNG.

October 21, 2020 08:30 AM CDT

View On-Demand

 

Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2020 Gulf Publishing Holdings LLC.