In the past few years, the U.S. shale gas revolution has cut import needs resulting in a global oversupply of liquefied natural gas (LNG) and lower gas prices. As U.S. LNG sendout volumes began to take off in 2007, market conditions weakened, demand growth slowed and the world economy faltered. In the midst of the current boom in LNG construction and U.S. gas production, dramatic changes in the economy have forced LNG players to quickly respond by creating a more efficient and dynamic market.
Platts' Market Alert titled The LNG Market: New World Order examines the major shift in U.S. market conditions and resulting global LNG market changes, especially to suppliers who have found surprising demand growth in emerging and traditional world markets. The report also provides a broad overview of current global LNG supply and demand conditions including regasification and liquefaction capacity additions. Despite continuing LNG oversupply and excess shipping capacity, the global market is expected to rebalance and become net short by 2013.
As the second of five market alerts to complement the Forward Curve Suite™, Platts provides details on the direction markets are headed in the next five years. This report represents the first examination of the world LNG balance based on capacity utilization.
The Forward Curve Suite is a Platts report series that examines the top natural gas market issues for the 2010-15 timeframe. This market analysis package includes Forward Curve Quarterly™ and a five-part Market Alert series. The Forward Curve Quarterly is a quarterly assessment of U.S. supply, demand and prices for the upcoming five-year term.