The global LNG market remained in a state of oversupply in the second quarter of 2019, as new production entered the market faster than demand can keep up with. The second quarter alone saw the start-up of the 4.5mtpa Cameron train one and the 4.5mtpa Corpus Christi train two in the US, as well as the first cargo from Australia’s long-awaited floating production unit, the 3.6mtpa Prelude facility.
Deliveries to Europe doubled from the second quarter of 2018 as surplus output was dumped into Europe’s liquid spot-trading markets, pushing prices below $5.00/MMBtu and maintaining a wide gap between spot gas prices and oil. This is expected to continue later into this year, with the US expected to complete more new plants in the coming months, including Freeport.
Download the latest LNG Edge: Q2 2019 Trade Flow Report for an understanding of the key recent trends in the LNG market, as well as our outlook for the rest of the year. The analysis by Global LNG Analyst, Alex Froley, draws on detailed market data from the ICIS LNG market intelligence tool, LNG Edge. Get your copy here: