Posted 3/27/2024, 8:42:50 PM
LNG Prices Plunge as Supply Surges, But Major Players Bet on Long-Term Demand Growth
- LNG spot prices have more than halved from $19/mmBtu in 2023 to $8-9.25/mmBtu in April 2024 due to high inventory levels
- However, major energy players like Shell, ExxonMobil, and Saudi Aramco are aggressively expanding LNG capacities and see current low prices as a blip amid rising demand
- LNG is seen as an alternative to dirtier fossil fuels like coal and fuel oil in emerging markets like China, South Asia, and Southeast Asia
- U.S. is now the top LNG exporter but faces calls for more export terminals from energy companies
- Industry sees LNG as not just a transition fuel but a "destination fuel" underpinning future investments despite current low prices