Kudos to Angela Macdonald-Smith for attempting to bring a little sobriety to the great idiot today:
Consultancy FGE says between 25 million and 35 million tonnes of the 65 million tonnes a year of US LNG export capacity under construction has been sold to “middle men”, traders or portfolio LNG players such as BG Group or Mitsubishi, that still need to sell the gas on.
…In addition, about one-third of Qatar’s export LNG volumes are unsold, while the three big Chinese national oil companies and one Indian NOC have switched from buying to selling as they seek to re-sell LNG they have committed to purchasing, according to FGE.
…That means about 70 million tonnes a year of LNG is still looking for a buyer…
Yet existing Australian LNG producers should be mostly insulated from the worst of the effects, says Adelaide-based consultancy EnergyQuest.
It points out that the new Australian projects coming into production are all largely covered by contracted sales to buyers that respect the sanctity of contracts and value the long-term relationships that underpin the Asian LNG industry.
That’s MB’s 70mtpa surplus right there. As for EQ, use a bit of imagination, chaps, spot is going so low that Australian producer contracts will end up hanging from a toilet roll in the executive rest rooms of some Chinese petro-chemical firm.
The market seems to share my view this afternoon with everything gas pulverised:
