2020 is going to be tough for LNG exporters. A warm winter in the northern hemisphere has depressed demand in North America, Europe and Asia.[i] This together with the outbreak of the corona-virus means liquid natural gas prices are poised to test record lows. In essence, demand is insufficient to absorb rising global supplies of this super-cold fossil fuel. Consequently, the terms of trade have moved in favour of customers and against LNG exporters, who are no longer price-makers but price-takers. For example, in Asian markets, LNG fell from around $8 per million British thermal unit in January 2019 to just $3 per million British thermal unit in February 2020.[ii].
Reasons for oversupply
In a nutshell, “the global oversupply of LNG has been building and building and building,” states Ron Ozer, founder of gas-focused hedge fund Statar Capital LLC in New York. Read more https://www.rigzone.com/news/global_oversupply_equals_a_tough_year_for_lng_exporters-14-feb-2020-161094-article/