Global oversupply sets up LNG for a year of record low prices
Coastal Gaslink and the Kitimat LNG Facility are ramping up and expect to have thousands of workers on site by the end of this year.
SINGAPORE (Bloomberg) – Liquefied natural gas prices are poised to test record lows this year thanks to an onslaught of new supply and warmer winter temperatures curbing consumption.
The startup of new export projects from Australia to the U.S. has flooded the market, while brimming stockpiles in Europe and an expected slowdown in Chinese demand have dumped cold water on consumption prospects. LNG for spot delivery to North Asia is on track to hit an all-time low this summer, while gas prices in Europe and the U.S. are trading at the weakest seasonal levels since 1999.