.jpg)
1 hour ago
1
Article content
(Bloomberg) — The global market could absorb a record wave of new supply of liquefied natural gas, but much depends on net zero policies and renewables growth, the International Energy Agency said.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
The IEA said it revised up overall gas demand in its World Energy Outlook published Wednesday, but “questions still linger about where all the new LNG will go.”
Article content
Article content
Global LNG capacity is set to rise by about 50% by the end of the decade — the biggest build-out in the industry’s history — with suppliers and market watchers trying to gauge how deep and how long an anticipated glut could last, weighing on prices.
Article content
Article content
The IEA details several scenarios in its outlook, assuming different paces of energy transition and climate goals. The most bullish for gas demand — the so-called “current policies scenario” — sees global LNG appetite rising in line with supply until the end of the decade and even slightly exceeding already planned export capacities by 2035.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
However, the “stated policies scenario” sees stronger renewables growth, resulting in LNG oversupply in 2030, gradually disappearing only by 2035.
Article content
This period of LNG surplus creates risks for companies investing in new projects, with the US — the most flexible supplier that will add most of the capacities — having the greatest exposure, according to the report. Elsewhere, older plants with relatively high operating costs may not be competitive.
Article content
China is another “wild card” for the market, given its deepening energy ties with a major pipeline gas supplier, Russia, and uncertainty on the country’s LNG demand, the IEA said.
Article content
Advertisement 1
English (US)