Conoco Warns of Possible LNG Oversupply
From The Australian
By Matt Chambers
US oil major and Australian liquefied natural gas operator ConocoPhillips has warned new LNG plants here, in Europe, North America and Africa may outstrip demand, contrasting with recent bullish comments from the industry.
In a speech to an industry conference in Darwin yesterday, Conoco’s head of commercial in Australia, Mike Nazroo, warned that supply tightness might prove short-lived.
“In the longer term, capacity additions look set to catch up with, and even overtake, demand,” Mr Nazroo said. “Much of this supply growth is set to come from the Australian project wave, but there will be competing projects from North America, East Africa, Nigeria and Russia.”
The comments come after BG Group told investors this week that it saw plenty of demand coming on line to take up additional supply.
It also coincides with a conference in Tokyo where big gas importers such as Japan and India are increasing pressure on their LNG suppliers to lower prices.
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