3rd Leg Trading

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Oversupply of LNG could cause reduced investment creating shortage of LNG in the near future


So far, this oversupply has caused gas prices to fall. As a result, the private sector has already begun scaling back on investments in infrastructure to produce, store, and transport gas. This trend is
reminiscent of the oil market in the 1990s, when low prices dissuaded companies from investing in new sources of production. By the 2000s, demand outpaced supply and oil prices rose relentlessly for a decade. A similar boom-bust cycle could be on the horizon for the gas market. Low gas prices are deterring upstream producers from exploration, and globally, new investments in infrastructure to export LNG halted in 2016. Whereas the current oversupply is the result of decisions made
over the last decade to invest in gas production and infrastructure, falling investment flows today could send the market into a shortage within the next decade, resulting in increasing prices as
boom turns to bust

Consistent with the EIA data from which the baseline scenario is derived, the model predicts that demand for natural gas will increase from 3,500 bcm in 2014 to 4,100 bcm in 2025

edit....may depend upon how much natty we sell to Europe and other countries....Mexico...Europe...etc


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