LNG producers on a roll as market defies doomsayers

Written on the 8 January 2018

Australia's gas exporters are enjoying a brighter start to 2018 than for the last two years after stronger than expected growth in LNG demand last year averted a feared glut in supply and as oil prices reached levels not seen since December 2014.

A robust 11.6 per cent expansion in LNG consumption in 2017, spurred by soaring Chinese imports, meant that the increase in supply capacity as new projects started up in Australia and the US was absorbed, according to Singapore-based DataFusion Associates.

Bernstein Research put the LNG demand growth at 11 per cent, the strongest since 2011, and is forecasting consumption will almost double by 2030. It labelled the view that markets are oversupplied and that a surplus may last for several years as "misconceptions".

Read more...

Source: afr.com