LNG Shortage on the Way

And it could be a big one but there's a big if, of course: if there are no new LNG project, there will be a deficit. Why do they bother with these ifs I have no idea. There will, of course, be new projects.

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Correct. Drive for renewables also help natural gas - hard to ramp up coal-fired plant when wind stop blowing or night came.

Big uncertainty with LNG is its linkage to crude price - I expect it will become more flexible or disconnected.

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5 hours ago, Marina Schwarz said:

And it could be a big one but there's a big if, of course: if there are no new LNG project, there will be a deficit. Why do they bother with these ifs I have no idea. There will, of course, be new projects.

Arrrrrggghhhh.  My frustration that the old Oilpro forum is gone, along with all my comments.  In 2016, I wrote hundreds of comments about the impending global LNG glut.

Anyway, found one of my old comments on a Canadian blog.  I have quite a few longwinded comments in the following thread that blog, here is a relevant one:

Does It Matter That The BC Liberal Government Denied Petronas' Intention To Sell PNWLNG Before...Petronas did?

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    @ Grant G

    No worries, we have different views on recovery of LNG. I still tend to think the PNW LNG project is economically viable for Petronas in the long term (not the short term).

    For Canadians, not so much. The benefits promised by Canadian politicians to Canadian locals are laughable to me. Again, Canadians got played. Look at what happened to Australian LNG projects, when prices crashed. Lots of layoffs, and some LNG projects may never recover their costs.

    Agreed about the 40% increase in global LNG before 2020. But my view is still that global demand should catch up to global supply by around 2022. Obviously, I could be wrong about the future.  ...

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Wasn't there another LNG project in BC that they are currently cheering loudly? Which one was it?

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Petronas to buy 25% in LNG Canada, estimated to cost RM111bil

Petroliam Nasional Bhd (Petronas) is set to become the second-largest partner in LNG Canada after striking a deal to buy 25% in the liquefied natural gas (LNG) project in Kitimat, British Columbia, Canada.

This is an about-turn of event for the national oil and gas company, which in July 2017 scrapped plans to invest in the C$36bil (RM111.5bil) Pacific NorthWest LNG gas pipeline project in British Columbia, Canada, due to prolonged depressed prices and unfavourable market conditions for the energy industry then.  ...

 

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