Higher Asian demand for liquefied natural gas will mean no increase in imports to Europe next year, according to new research.
Global LNG supply is forecast to grow by 900 million cubic feet a day in 2014 as four liquefaction projects start operating, Biliana Pehlivanova, a New York-based analyst for Barclays, said in an e-mailed report dated yesterday.
“Global regasification capacity is set to grow by 2.8 billion cubic feet a day next year, with all but one terminal located in Asia,” Pehlivanova said.
Asian demand will be led by China, where five new regasification plants are set to start by the end of 2014. India, Malaysia, Indonesia and Singapore are also forecast to increase LNG imports, Barclays said.
There are “risks” that demand my decrease in Japan and South Korea, as both nations plan to restart nuclear plants. according to Pehlivanova.
“For South Korea, this is likely to affect consumption later this year and next,” Pehlivanova said. “For Japan, effects on consumption are likely to be limited until 2015.”
The tightness in global LNG markets may peak next year, according to Barclays.
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