Business

Global LNG market expected to tighten in 2014

BG Group expects the global LNG market to tighten this year as market demand continues to outpace supply.

In its Global LNG Market Overview 2013-14 report, the company expected global LNG demand to grow at an annual rate of 5% to 2025, twice as fast as for gas overall.

New LNG trains in Australasia with combined capacity of 67 million tonnes per annum, including BG Group's QCLNG project on Gladstone's Curtis Island, represent the start of the industry's next major wave of production, it said.

But the outlook for 2014 was for only a modest increase in global supply, and overall performance would depend on unplanned outages and declines in output from existing plants.

BG Group vice president of global LNG Andrew Walker said limited supply growth in 2013, the prospect that overall production would remain stalled in 2014 and strong demand growth in Asia suggested the global LNG market would continue to tighten.

"Reflecting the tight underlying market, we expect LNG spot prices, assuming normal weather, to remain robust through 2014," Dr Walker said.

"In fact, we believe the global LNG market will be tighter for longer than many assume, until the end of the decade at least."

Dr Walker said that, in addition to the weather and the potential for European LNG imports to hit bottom, the industry will keep a close watch in 2014 on the rate of gas and LNG demand growth in China, the operational performance of LNG suppliers and the return of nuclear units in Japan.

You can read the full report here.

Topics:  bg group, curtis island, gas, gladstone business, qclng




Join the Community.

Get your local news, your way.

Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

'Nothing to hide' Bikie demands police apology after funeral

Police stop guests from leaving James Henzell's funeral at Boyne Tannum.

GLADSTONE'S Black Uhlans Sergeant at Arms demands a police apology.

Liquidators question Jon Kelly truck deal

Jon Kelly has appeared in court over the sale of some of his show trucks.

Jon Kelly faces court over truck deal.

Mum, daughter fight Gladstone school over girl's green hair

Janine Brooks wants Gladstone State High School staff to be consistent and not single out her daughter Brooke Dawes, 13. Photo Mike Richards / The Observer

PARENT unhappy with Gladstone school after her daughter is isolated.

Latest deals and offers

IBAC Evidence Police Bashing 5

Officers drag the woman back to her cell

In this video the woman drinks water from the toilet.

IBAC Evidence Police Bashing 4

In this video the woman asks for water as the tap in the room is broken

IBAC Evidence Police Bashing 3

In this video police continue their search and male officers are present despite...

Gladstone hits top in state for vacancies

Gladstone has the highest residential rental vacancy rate in Qld

Sale nears on last large block of land in Coolum

The 43.37ha property on South Coolum Rd has sold.

South Coolum Rd property to be land banked