DEVELOPING LNG BREAKBULK SERVICES - 'THE STAKES ARE VERY HIGH'

摘要

We are at an interesting turning point in the LNG industry. Despite the current low LNG prices, both for spot LNG and oil-indexed long term supply, LNG demand in the key consuming nations in Asia has remained largely suppressed compared with previous years, due to a mix of reasons that includes the restart of nuclear power plants, weak economic conditions and coal remaining the dominant fuel source. At the same time, a number of new LNG production projects came on-stream in 2015, with more due this year and beyond, leading to an oversupplied LNG market in Asia. The circumstances have led to substantial quantities of new LNG production entering the market, particularly from the US and Australia, to be contracted on destination-free terms, which means that such cargoes can be diverted or traded by the buyer into other markets.