Spot LNG Sales Rising as Buyers Reduce Long-Term Deals: Pavilion
Singapore (Bloomberg) | 9 September 2015
(Bloomberg) – LNG spot market now represents 27% of global sales as buyers signing fewer long-term, large-volume contracts, according to Pavilion Energy.
Global LNG supply expected to rise by 13m mt/yr in 2015 with four new liquefaction plants in Australia and Sabine Pass in U.S. coming onstream, says Group CEO Seah Moon Ming at a Singapore conference.
- U.S., Australia will provide 39% of global supply by 2020
- China’s “over-aggressive” hikes in industrial gas prices and slowing economic growth led to weaker demand
- Demand growth in South Korea, Japan “somewhat slowed” as they focus on renewable, clean coal, nuclear energy
- Long-term view still positive for LNG demand
- 29 countries importing LNG now from 15 nations 10 yrs ago
- 54 new terminals to be built by 2020, of which 27 have already received approval or are under construction
- In next 5 yrs, ~150 new LNG carriers will be built, bring world total to ~555
- Co. in JV with BW Group; JV now owns 3 LNG ships
- Co. supplies gas to >30% of industrial users in Singapore