LNG

Asian demand growth could keep LNG prices high

Higher-than-anticipated demand for LNG has kept Asian gas prices high over the winter, meaning the industry needs to work harder to increase supply and reduce costs Higher-than-anticipated demand for LNG has kept Asian gas prices high over the winter, meaning the industry needs to work harder to increase supply and reduce costs.
By Andrew Walker 22 February 2018 0 29703
An LNG tanker at the Incheon terminal in South Korea. A tanker at South Korea’s Incheon LNG terminal. (Kogas)

Strong Chinese demand will delay the widely forecast LNG supply glut by at least another year, delegates at the International Petroleum Week conference in London heard on Wednesday.

“2017 wasn’t the year of major oversupply and it probably won’t be in 2018. China will have another year of demand growth as they haven’t finished their [coal-to-gas] conversions yet,” Andrew Walker, vice president of strategy and communication at Cheniere, told delegates. 

Chinese gas demand has grown substantially as a result of policy decisions to switch coal-fired...