Lack of stamina to increase global LNG supply

Recently, Asian LNG spot prices have continued to rise.

Supply from Asia and Europe continues to tighten

Before the summer peak of electricity consumption, the upcoming high electricity demand pushed up the demand for LNG in many countries in Asia and Europe.

The industry research organization BofA Global Institute analyzed that in the first quarter of this year, the demand for electricity in Europe was high.

It is reported that last winter, many Asian countries, including Japan and South Korea, experienced LNG shortages.

The risk of oversupply still exists

However, despite repeated rises in LNG spot prices in Asia and Europe, global LNG producers are still wary of oversupply.

On May 18th, Australia’s largest LNG producer Woodside announced that it would sell 50% of the company’s Kitimat natural gas project.

In addition, since Qatar, the world's largest LNG producer, announced its expansion in February this year, other gas producing countries have intensified their concerns about oversupply in the LNG market.

　　Be cautious about the demand outlook

　　According to the latest data released by the International LNG Import Association, in 2020, global LNG demand will increase by 0.

　　Some analysts pointed out that in recent years, major Asian economies such as China and India have successively announced the acceleration of energy transition, and natural gas, which is cleaner than coal, has become the first choice for low-carbon transition.

　　However, even if the growth prospects on the demand side are considerable, LNG producers have another important consideration.