Supply Woes Caused Lng Contraction In 2008

摘要

Global LNG trade last year contracted 0.5% to 171.8 million nit (about 22 Bcfd), after growing at an average annual rate of 8% in the last 27 years, according to London-based UK consultant, Andy Flower. The decline of about 800,000 mt, equivalent to 13 standard-sized cargoes, was the result of a shortage of supply as various liquefaction plants experienced upstream gas shortfalls and technical problems.rnLiquefaction capacity is expected to jump by about 24 million mt this year, which would increase trade to almost 196 million mt, Flower said. The growth will come from the startup of new projects and better performances at some existing plants, he said. "The flow of cargoes into the UK and the US could become something of a flood by the second half of the year" as new liquefaction trains are commissioned in Qatar, Russia, Yemen and Indonesia, Flower said.rnFourth-quarter 2008 trends look likely to set the tone for the year. Asian LNG imports totaled 28.5 million mt, down 4.8% compared with the same quarter in 2007, and were lower than in the third quarter, which is counter to the normal trend of Asian LNG demand peaking in the winter. The fourth-quarter figures reflected lower industrial activity in Asia and consumers opting for oil products rather than gas, owing to the fall in oil prices, which takes time to feed through into gas prices.