A transforming LNG market is marked by globalization; changing pricing models; and major demand uncertainties. Prices have fallen sharply and the market appears likely to be over-supplied for some years.
Traditional Japan-South Korea-Taiwan LNG buyers appear mature, while European demand depends heavily on Russian strategies, as well as environmental policy. Chinese LNG requirements are key, but influenced strongly by pipeline gas competition, economic growth and coal use. Emerging LNG markets in Asia, the Middle East, Latin America and in transport (shipping and road) present a major growth opportunity, but have to be developed actively.
This report is one of a series exploring LNG markets in detail – how they are changing, why, and how participants should react.
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