Demand and Optimization Growth Expected in LNG Market
Executives at a recent industry event stated that portfolio optimization will increase as the LNG market becomes more flexible and liquid.
The expected lower price environment, resulting from upcoming global liquefaction capacity additions, will stimulate demand from price-sensitive markets, promoting liquidity and optimization opportunities.
- 200 million tons per year of new LNG export capacity are under construction, expected to enter the market by 2030.
- Most new capacity will come from the US and Qatar, with projects like Exxon Mobil and QatarEnergy's.
Lower prices will help stimulate demand and promote liquidity and opportunities for portfolio optimization.
A potential staggered addition to the supply pool, quickly met by demand, could endanger the expected price fall.
Author's summary: LNG market expects growth in demand and optimization.