PIRA: LNG Supply up as demand growth stalls

NYC-based PIRA Energy said it believes that significant increases in LNG supply are occurring just as it appears that demand growth is stalling.

Around 75% of the supply growth will occur in Asia through the end of 2017, which will have several forms of impact on trade flows, PIRA noted in its weekly report.

The market has realized its first flirtation with summer 2012-type EG sector gas burns in June, triggering the first sizeable year-on-year reduction in the storage surplus.

Next month looms as pivotal for a gas EG upswing, and given the July 2014 huge CDD shortfall relative to the 10-year average, normal CDDs should trigger a huge year-on-year boost.

However, bearish HH price risks will linger in the absence of such weather-related demand, PIRA added.




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