‘Oversupply’ of LNG in 2009

Qatar: An additional 100m tonnes of liquified natural gas is scheduled to come online in 2009 and 2010, a 50% increase on current capability, creating a possible oversupply on world markets.

Qatar alone plans to more than double its LNG output, from 30m tonnes annually currently, to 77m tonnes by 2010. Besides Qatar, there are also reports of projects in Kuwait and Australia becoming operational in 2010. “Suppliers in Africa, the Middle East and Europe are threatening the dominance of Asia,” EI said. According to an estimate by Energy Information Agency of the US, world’s natural gas consumption is expected to increase from 105 trillion cubic feet in 2005 to 158 trillion cubic feet in 2030. Another estimate by energy analysis agency Future Energy sets 2.4 per cent as the rate for growth in demand for natural gas in the coming years. The report comes close on the heels of at least two major projects – one in Taiwan (a storage terminal) and the other in Qatar getting delayed. EI said delays in global projects, coupled with soaring demand for gas, are contributing to short-term LNG supply shortages and escalating prices.

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