Global liquefied Natural gas (LNG) supply would increase by 35 million to 40 million tonnes in 2019. representing a year-on-year growth of around 9 percent. said Matthew Shruhan. senior analyst on global LNG with IHS Markit. a London-based global information provider.
Speaking at a panel discussion at ongoing energy industry conference CERAWeek here on Thursday. Shruhan expected a similar size of new LNG supply would be added in 2020.
`We are starting to see signs that we`re heading into a temporary period of surplus in the market.` said Shruhan. noting LNG prices will be relatively soft even in the winter.
The question for this year is how the cargo is going to be cleared and absorbed in the market. according to Shruhan.
Investment activities in the LNG sector saw an upturn especially in the last couple of months with the remarkable final investment decision (FID) reached with LNG Canada and Golden Pass LNG export projects.
`We expect that to continue into 2019 and 2020.` Shruhan said. adding that `in fact. we actually become a record year this year here for new FIDs.`