The LNG market is experiencing an unexpected slump in demand which has not been totally caused by the world recession but has also been caused by the discovery of natural gas supplies in US shale deposits which has led to an unprecedented increase in its gas reserves.
At present no imminent increase in demand for LNG is forecasted which has lead many producers to put their plans more on the long term. They don’t see any change in their fortune for 2010 or even in 2011, in fact most LNG suppliers have had to accept that the market may not pick up until late 2012 or possibly as many have predicted until2014 or 2015.
However Jean-Francois Cirelli who is vice chairman of France’s GDF Suez feels that the current situation is just a temporary glitch in the LNG market and there is no cause for concern in the long term.
Be this as it may many key world LNG producers have changed their plans significantly because of the current slump. Russian gas giant Gazprom and partners have post-phoned shipments from their giant Arctic Shtokman LNG terminal until at least 2017.
Also Shtokman LNG whose primary customers have always been based in the US now feel they may have to seek out new global markets. US natural gas reserves are now said to be 33% higher than predicted in 2006 due to the discovery of the shale gas reserves which currently have sufficient reserves for another 100 years at today’s predicted output capacity.Andrew Reid, Staff Writer, Gulf Jobs Market News