LNG market heading for volatile times: BG Group

Singapore

THE liquefied natural gas (LNG) market is headed for further volatility in the next few years as it responds to "lumpy" additions to supply and demand, Singapore's exclusive gas aggregator BG Group said on Wednesday.

After four years of supply hiatus, the market is entering a period of production growth, courtesy of the Australian supply wave, the British major said at a media briefing.

The seven projects now under construction in Australia are starting to come online, which BG reckons will add about 58 million tonnes per annum (MTPA) of LNG capacity by 2019. HSBC economists had earlier said Australia is enroute to becoming the largest LNG exporter by 2018.

In addition, the US Gulf of Mexico could be exporting its first cargo around year-end, marking the start of a new supply wave after Australia, BG said. The global LNG player added that two projects in the US made final investment decisions (FID) in 2014, with a total of 41 million tonnes of LNG capacity now under construction. BG added that Cove Point, another LNG project in the US, is also undertaking initial construction works despite not having formally announ…