LNG

Catch 22 for Shell’s bullish LNG outlook?

The LNG market needs investment in liquefaction capacity to meet projected demand, but the future demand itself depends on the investment being made The LNG market needs investment in liquefaction capacity to meet projected demand, but the future demand itself depends on the investment being made.
By Peter Stewart 28 February 2018 0 29774
The Melkøya Snøhvit LNG plant. The Melkøya Snøhvit LNG plant. (Statoil)

In its latest LNG Outlook Shell highlights the growing role of LNG trading, driven by the shorter and smaller contracts signed by buyers during the recent supply glut. At the same time, it argues that strong growth in LNG demand requires investment in liquefaction capacity to be made now to avoid shortages of the fuel in the mid-2020s. 

Shell points out a ‘mismatch’ between buyers and sellers: while suppliers still seek long-term LNG sales to secure financing, buyers increasingly want shorter, lower-volume and more flexible...