Uncertainty on the horizon for LNG – S&P explores the sector in the specialist energy press

CaptureLiquefied natural gas (LNG) has historically enjoyed stable prices as a commodity. Yet the outlook for 2016 is less certain, according to Simon Redmond, Director at Standard & Poor’s and commodities specialist. Writing for specialist monthly journal, Petroleum Review from the Energy Institute, he explains that a glut in global supply has driven down prices.

Redmond argues that while most LNG supply remains covered by long-term off-take contracts, any supply that is deferred or left uncontracted is at risk of these low prices. Importantly, such market uncertainty has important ramifications for the ratings of energy projects.

Please find the article here (note: a membership is required).

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