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LNG Surplus to Weigh on Prices in 2017, 2018: BMI

[Dow Jones] Asian spot-market prices for liquefied natural gas are likely to bottom out in 2018, then stage a recovery from the following year thanks to a thinning pipeline of export projects and demand in new markets, BMI Research reckons. The Asia spot LNG benchmark is expected to average US$4.95 per million British thermal units this year, weakening in the fourth quarter thanks to seasonally weaker demand and the rising availability of exported gas. It expects year-on-year declines in prices in 2017 and 2018, bottoming out at US$3.95, driven by an about 50% increase in global LNG supplies from 2016-20. As the market picks up, it targets an average price of US$4.20 in 2019 and US$4.80 the year after.

ArticleSource:Dow Jones