The large number of new liquefaction projects planned to come onstream during 2017/18 led to speculation that the global spot LNG market could be hit by a period of surplus supply and falling prices. But an unexpected surge in demand from some newer importers kept the market balance tight in fourth quarter 2017, driving East Asia Index spot LNG prices higher than the previous year, with the front-month EAX ending December at $11.00/MMBtu.
The LNG Edge Q4 2017 Trade Flow Report examines the changes in import and export flows responsible, drawing on data from ship-tracking and market intelligence platform LNG Edge. The report shows how rapid increases in demand from countries including China and Turkey helped to absorb the new supplies coming onstream from the US and Australia.
In addition to a review of exports, imports and price movements over the last quarter, the report also looks ahead to key factors that will influence the market over coming months; including the continued-ramp up of exports from Russia’s new Yamal LNG project, now delivering cargoes to countries including the UK and US, and new projects due onstream soon in the US, Australia and Cameroon.