BG CEO: LNG Industry Not Headed for Oversupply
BG Group’s Chief Executive Chris Finlayson presented at the Howard Weil Energy Conference in New Orleans on Wednesday.
He provided an outlook on the global LNG market, before explaining how BG Group fits into a period of continued high growth for the LNG industry.
“The LNG industry is not headed for oversupply,” according to Finlayson .
“As an industry that tends to systematically overestimate future supply and underestimate demand, we have been here before,” Finlayson said. “We believe that some new projects across the industry will probably take longer to deliver than many are expecting, and certainly some will fall by the way side.”
Chris explained that the LNG supply-demand gap will not be filled by the US alone. Projects in other locations – including Western Canada and East Africa – will also be required. He added that although LNG exports from the US will add some flexibility to the industry, the majority of volumes will continue to be delivered primarily to a single market over the contract’s life.
On future prices, he said they will continue to remain regionally differentiated, with Asia being the price setting market for the foreseeable future.