LNG liquefaction production has grown dramatically over the past ten years and LNG demand growth has become stagnant in many markets. Spot LNG prices have collapsed to the lowest levels in twenty years, and some buyers secured too much LNG supply without firm customers.
Surplus cargoes will soon flood the market as new projects start up in 2017-2018, and final investment decisions for many new liquefaction projects have been delayed or cancelled.
Elisabeth Murphy, analyst at ESAI Energy, points out that "The LNG market will eliminate its surplus capacity around 2024. By 2025, the next wave of LNG liquefaction will be needed as demand catches up and then exceeds supply.
Read the article online at: https://www.lngindustry.com/liquefaction/08062017/lng-market-plagued-by-surplus-capacity/