Home Oil Prices Rig Count Energy Energy-General Oil Prices Crude Oil Heating Oil Gas Prices Natural Gas Coal Company News Interviews Alternative Energy Nuclear Power Solar Energy Hydroelectric Renewable Energy Geothermal Energy Wind Power Fuel Cells Tidal Energy Biofuels Environment Global Warming Oil Spills Geopolitics Africa Asia Europe Indonesia International Middle East North America South America Video Breaking News Premium Articles Community My Account Latest Discussions Energy General Oil Stocks & Prices Other Energy Topics All Prices OPEC Blends Canadian Blends U.S. Blends WTI Crude • 11 mins 59.65 +0.41 +0.69% Brent Crude • 10 mins 63.45 +0.54 +0.86% Natural Gas • 12 mins 3.001 -0.068 -2.22% Mars US • 2 hours 59.69 -1.28 -2.10% Opec Basket • 4 days 63.43 +0.95 +1.52% Urals • 61 days 42.22 +0.00 +0.00% Louisiana Light • 4 days 62.65 +0.58 +0.93% Louisiana Light • 4 days 62.65 +0.58 +0.93% Bonny Light • 3 days 62.09 -0.73 -1.16% Mexican Basket • 4 days 59.40 +0.60 +1.02% Natural Gas • 12 mins 3.001 -0.068 -2.22% Click Here for 150+ Global Oil Prices Click Here for 150+ Global Oil Prices
Click Here for 150+ Global Oil Prices
Marine • 3 days 60.80 -2.58 -4.07% Murban • 3 days 61.15 -2.38 -3.75% Iran Heavy • 3 days 59.73 -1.10 -1.81% Basra Light • 3 days 62.55 -1.39 -2.17% Saharan Blend • 3 days 62.70 -0.95 -1.49% Bonny Light • 3 days 62.09 -0.73 -1.16% Bonny Light • 3 days 62.09 -0.73 -1.16% Girassol • 3 days 63.03 -0.86 -1.35% Opec Basket • 4 days 63.43 +0.95 +1.52% OPEC Members Monthly Click Here for 150+ Global Oil Prices Click Here for 150+ Global Oil Prices
Click Here for 150+ Global Oil Prices
Canadian Crude Index • 3 days 47.64 -1.29 -2.64% Western Canadian Select • 2 days 48.68 -0.73 -1.48% Canadian Condensate • 3 days 59.53 -0.63 -1.05% Premium Synthetic • 3 days 60.93 -0.63 -1.02% Sweet Crude • 2 days 58.03 -0.63 -1.07% Peace Sour • 2 days 55.03 -0.63 -1.13% Peace Sour • 2 days 55.03 -0.63 -1.13% Light Sour Blend • 2 days 57.28 -0.63 -1.09% Syncrude Sweet Premium • 2 days 59.03 -0.63 -1.06% Central Alberta • 2 days 55.18 -0.63 -1.13% Click Here for 150+ Global Oil Prices Click Here for 150+ Global Oil Prices
Click Here for 150+ Global Oil Prices
Louisiana Light • 4 days 62.65 +0.58 +0.93% Domestic Swt. @ Cushing • 4 days 56.75 -0.50 -0.87% Giddings • 4 days 50.50 -0.50 -0.98% ANS West Coast • 5 days 64.04 +1.08 +1.72% West Texas Sour • 4 days 54.47 -0.62 -1.13% Eagle Ford • 4 days 58.42 -0.62 -1.05% Eagle Ford • 4 days 58.42 -0.62 -1.05% Oklahoma Sweet • 4 days 56.75 -0.50 -0.87% Kansas Common • 4 days 50.75 +1.00 +2.01% Buena Vista • 4 days 66.91 +0.47 +0.71% Click Here for 150+ Global Oil Prices Click Here for 150+ Global Oil Prices
Click Here for 150+ Global Oil Prices
1D 1M 3M 1Y All Charts Discussion Headlines 2 days Texas May Lack Authority To Enforce Ban On Natural Gas Exports 2 days Some Of Texas‘ Biggest Refineries Could Take Weeks To Restart 2 days ERCOT Declares “End” To Texas “Emergency Conditions” 2 days Pemex’s Oil Production Increase Is More Illusion Than Reality 2 days Mexican President Urges Population To Conserve Energy Amid Power Shortage 2 days Ford To Go All-Electric In Europe By 2030 3 days Mexico Overhauls Its Huge Oil Hedge 3 days Tesla Model 3 Is Consumer Reports’ Top Pick For Electric Car 3 days U.S. LNG Exports Set To Exceed Pipeline Gas Exports Next Year 3 days Why Investors Are Buying Bonds Of The World’s Most Indebted Oil Company 3 days Volkswagen Shares Jump After News Of Possible Porsche Listing 3 days Iraq Boosts Oil Exports In Early February Despite OPEC+ Pledge 3 days Texas Governor Bans Natural Gas Exports 4 days WTI Climbs Above $61 As Crude Stocks Dwindle 4 days Saudi Arabia Warns Oil Producers To Remain “Extremely Cautious” 4 days BP Launches Award Scheme To Rally Employee Support For Renewables 4 days Russia, Saudi Arabia Vow Continued Coordination In Oil Policy 4 days Gasoline Prices Could Hit $3 5 days Tesla Prepares To Build EV Factory In India 5 days Where Did The ‘Missing Barrels’ From 2020s Oil Glut Go? 5 days China Looks To Curb Exports Of Rare Earth Minerals To The U.S. 5 days Norway Averts Oil Strike At Its Largest Refinery 5 days U.S. Natural Gas Crisis Spills Into Mexico 5 days Jaguar Becomes All-Electric From 2025 6 days US Administration Cancels Gulf Of Mexico March Oil & Gas Lease Sale 6 days Arctic Winter In Texas Prompts Rotating Power Outages 6 days Scientists Use Lithium To Control Heat In Nuclear Fusion Reactors 6 days India Boosts Spot Oil Imports As Major OPEC Producers Cut Supply 6 days Shell Shuts Down 310,000 Bpd Deer Park Refinery 6 days Hundreds Of Fuel Tanker Trucks Explode At Iran-Afghanistan Border 9 days Is China Headed To Peak Oil Demand? 9 days Nigerians Can Now Sue Shell In The UK For Oil Pollution 9 days Utility-Scale Batteries Return 82% Of Stored Electricity 9 days China Imports 11.12 Million Bpd Of Oil In January 9 days Gazprom Plans To Start Nord Stream 2 Gas Pipeline This Year 10 days US Sells Seized Iranian Fuel As It Looks To Detain Another Oil Tanker 10 days Audi Unveils All-Electric Sport Sedan To Rival Tesla Model S 10 days Saudi Aramco Looks To Lure Buyers To Pipeline Unit With $10B Loan 10 days Mexico’s Push For Government Control Could Lead To Sudden Price Hikes 10 days Oil Majors Shell And Marathon Cut Jobs 4 minutes IMPORTANT ARTICLE BY OILPRICE.COM EDITOR – “Naked Short Selling: The Truth Is Much Worse Than You Have Been Told” 5 minutes “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova 7 minutes United States LNG Exports Reach Third Place 16 mins Texas forced to have rolling black outs. Not from downed power line , but because the wind energy turbines are frozen. 4 hours Pipeline vs Train vs Ship to Transport Crude Oil. 9 hours The latest GOP nonsense on Texas shows us the future Republicans want 57 mins Disaster looming in UK offshore wind power 4 hours Minerals, Mining and Industrial Ecology 1 day U.S. Presidential Elections Status – Electoral Votes 2 hours Scientist clone endangered Black Footed Ferret from Ferret that died 30 years ago . It’s a 100% exact genomic match. 8 hours The World Economic Forum & Davos – Setting the agenda on fossil fuels, global regulations, etc. 20 hours Germany and France Snub BIden Re China 1 day An exciting development in EV Aviation: Volocopter Breaking News: Texas May Lack Authority To Enforce Ban On Natural Gas Exports
Find us on:
Qatar Looks To Be World’s Top LNG Producer For Decades Qatar’s major expansion of itsâ¦
Natural Gas Prices Explode On Cold Weather Reports Natural gas prices exploded onâ¦
Qatar Approves World’s Largest LNG Project Qatar Petroleum took this weekâ¦
Home Energy Natural Gas Tsvetana Paraskova
Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.
Share Facebook Twitter Google + Linkedin Reddit Premium Content Is Another LNG Glut Looming? By Tsvetana Paraskova – Feb 21, 2021, 4:00 PM CST Join Our Community Global natural gas demand is set to return to pre-crisis levels as early as this year and will continue to rise in the coming years, thanks to the coal-to-gas switch in Asia, particularly China. The growing gas demand will drive more liquefied natural gas (LNG) consumption and trade, and producers are gearing up for a new cycle of final investment decisions (FIDs) on projects.
The recent record-high LNG spot prices in Asia highlighted the more stable prices of the gas for LNG buyers in long-term supply contracts compared to the much higher volatility in spot prices. However, long-term supply is indexed to the inherently volatile oil prices.
The term supply contracts are set to underpin the additional LNG capacity the world will need this decade and could prompt a new wave of an investment super-cycle in LNG projects.
However, a possible new wave of strong investment in LNG could create a massive glut later this decade if most of the planned or proposed projects move forward, Rochelle Toplensky of The Wall Street Journal argues.
Qatar already moved to claim LNG supremacy, approving last week what it says would be the world’s largest LNG project in terms of capacity, and likely the largest oil and gas project in terms of value to get the green light this year.
More projects apart from Qatar’s mega plan will be needed to meet the growing LNG demand, analysts say. But they also warn that a renewed rush to sanctioning LNG projects would leave the market with a supply overhang by the end of this decade.
Around 104 million tons per annum (tpa) of new LNG supply will need to move forward over the next five years in order to meet the 580-million-ton global oil demand by 2030, Rystad Energy says .
However, the current proposed LNG capacity is ten times higher—at around 1 billion tpa. This proposed supply will be competing to secure buyers and attract investors, according to Rystad Energy.
“After a poor sanctioning year in 2020, we believe that the optimism is back in the market and that more final investment decisions for LNG projects will follow after Qatar’s NFE,” the consultancy said last week.
Related: Gas Companies “Hit the Jackpot” On Deep Freeze
However, new projects will need more careful planning than in the previous boom in the mid-2010s. First, they will have to compete for profitability with low-cost Qatari and Russian LNG projects. And secondly, buyers and investors will be increasingly looking at the environmental credentials of the LNG projects as many major developed economies, most of which are importers of LNG, have raised the bar for environmental standards as they pledge net-zero emission economies within three decades.
It’s not surprising, then, that when announcing the major North Field project expansion, Qatar Petroleum also boasted plans for a CO2 capture and sequestration (CCS) system as part of the project and said the project would recover 75 percent of the plant’s tertiary water, conserving 10.7 million cubic meters of water per year.
“Qatar’s decision to construct a carbon capture and storage facility, as well as additional environmental investments, shows that LNG suppliers are increasingly putting focus on ways that they can mitigate their carbon emissions,” said Wood Mackenzie research director Giles Farrer.
“Policy makers will need to provide clarity on decarbonisation plans, including how they see the role of natural gas, following pledges to achieve climate neutrality,” Wood Mackenzie vice president Massimo Di Odoardo says , noting that “Decarbonising natural gas will become a strategic priority for the gas industry.”
According to Katan Hirachand, managing director at Societe Generale Corporate & Investment Banking, lenders will look at the emissions profile of projects before committing to financing new LNG supply.
“It is not black and white. Certain projects will go ahead and some will not,” Hirachand said at the online European Gas Conference last month, as carried by Reuters .
New LNG projects will be sanctioned this decade after the shock in 2020 put many investments on hold. But those new facilities will have to not only compete with the low-cost high-volume Qatari gas, but also to show emission mitigation efforts in order to win the backing of investors and buyers.
By Tsvetana Paraskova for Oilprice.com
More Top Reads From Oilprice.com:
Is This Oil Rally The Start Of Something Much Bigger?
Texas Winter Storm Highlights The Importance Of Fossil Fuels
What The Media Isn’t Telling You About Texas Blackouts Download The Free Oilprice App Today