Salient to Investors:
Mark Wiseman et al at Goldman Sachs said:
- LNG projects in Africa, Canada and Australia face delays or cancellations as global demand slows, US output increases, nuclear reactors restart in Japan, China’s success in shale-gas E&P, and economic conditions in ASEAN.
- Global demand will compound at 5% annual by 2020, and 4% annual by 2025.
- The window for US LNG is limited and the US will not be spared from the pull-back.
- Papua New Guinea has the lowest risks as it expands LNG production.
- Overseas, Papua New Guinea and East Africa may be the best placed regions to compete on cost competitiveness, while the industry has renewed its focus on capital discipline.
- Expect strong demand growth in Asia led by China and ASEAN nations – due to strong economic growth, urbanization, and declining local gas supplies – with modest growth from India, South Korea and Japan.
- China is driving increased gas use, especially in residential and industrial consumption, and transportation. However, gas-fired power generation capacity is not a high priority in China given the lack of competitively priced supply compared with other feedstock.
- LNG demand in Thailand, Singapore, Philippines, Indonesia, and Vietnam will continue to grow.
- Read the full article at http://www.bloomberg.com/news/2014-10-02/goldman-sees-global-lng-projects-at-risk-as-demand-growth-slows.html
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