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LNG Market to Be Slightly Oversupplied by 2030: Barclays

LNG

Global LNG supply will reach 665m mtpa by 2030 with capacity additions in North America and the Middle East creating a buyer’s market, according to Barclays, cited by Bloomberg.

  • “It is likely that large buyers will look for ways to moderate LNG import costs,” the bank said.
  • From 2027-2030, supply will likely outstrip demand by around 10%.
  • However, additional supply will create its own demand, meaning fears of depressed gas prices are exaggerated.
  • Moving 1% of electricity demand in China from coal to gas would add about 30m tons/year to LNG, Bloomberg said.
  • China’s LNG demand could peak at around 130 mtpa by the 2030s, Barclays said.
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Global LNG supply will reach 665m mtpa by 2030 with capacity additions in North America and the Middle East creating a buyer’s market, according to Barclays, cited by Bloomberg.

  • “It is likely that large buyers will look for ways to moderate LNG import costs,” the bank said.
  • From 2027-2030, supply will likely outstrip demand by around 10%.
  • However, additional supply will create its own demand, meaning fears of depressed gas prices are exaggerated.
  • Moving 1% of electricity demand in China from coal to gas would add about 30m tons/year to LNG, Bloomberg said.
  • China’s LNG demand could peak at around 130 mtpa by the 2030s, Barclays said.