LNG newbuilding market in a 'perfect storm'

摘要

The LNG market is experiencing a 'perfect storm', a situation that has evolved through a sequence of events, each worse than the one before. Things may soon be getting out of hand. The pressure of the energy transition has set back investment in hydrocarbons by years, with ESG considerations serving to restrict the energy investment needed. Then the Covid pandemic worsened the situation further by hiding underlying energy growth. When Chinas economy came back online, we saw quite a substantial growth in the requirement for gas. LNG supply was outstripped by demand and its price went up. At some point, it was no longer able to maintain its market share and coal kicked in, which is why 2021 was a record year for coal as well. Many European countries 'kept the lights on only thanks to coal going back online. All this meant that months ago, before the Ukraine crisis, we were already seeing an increase in investment in liquefaction plants and a greater appetite for expanded Qatari gas production and other infrastructure go-ahead decisions. The market was in a growing spiral.