?Houston-based Waterborne Energy Inc., a consulting firm that tracks the liquefied natural gas (LNG) sector, says major shifts are afoot in the global market this year.
Worldwide, LNG production will jump nearly 30%; the stunning rise means international spot prices will drop and imports to the U.S. are likely to grow strongly.
“While 2009 will start slow, we expect a 30% rise in total LNG production worldwide by year-end (2009),” says Steve Johnson, Waterborne president.
In the first half of the year, some 2.8 trillion cubic feet of new LNG production capacity will come online. Johnson says that Asia and Europe will be unable to absorb the new gas supply, due to both restricted regasification capacity and reduced power demand due to slowing economies.
Additionally, the number of LNG tankers is growing. Johnson notes that 45 new tankers are scheduled to be delivered in 2009, adding further transportation capacity.
By late spring 2009, excess LNG will begin to head toward the U.S. Facilities at Lake Charles, Louisiana, and Cove Point, Maryland, will be taking LNG cargoes by summer. Waterborne expects monthly U.S. imports to reach 40 billion cubic feet (Bcf) in July, and to rise to 64 Bcf by early winter.
U.S. LNG imports averaged 950 million cubic feet per day in 2008, far below the 2007 record of 2.1 Bcf a day. By 2010, Waterborne expects that imports will rebound to levels above that seen in 2007.
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