LONDON--The global market for liquefied natural gas will become
more volatile as fresh supply streams emerge and new markets open
up at different times, BG Group PLC (BG.LN) said in its annual LNG
outlook.
However, despite volatility caused by mismatches between supply
and demand, spot LNG prices will trade in a narrower range than in
recent years due to lower oil prices, said Andrew Walker, BG's vice
president of global LNG.
BG Group is one of the world top LNG companies. Shipping LNG
cargoes around the world delivered around 40% of BG's earnings
before interest and tax in 2014.
"After four years of flat supply we are entering a period of
supply growth. This new supply will be absorbed by continued growth
in Asian demand, together with the creation of up to six new
markets," Mr. Walker said.
Demand from new markets in Egypt, Jordan, Pakistan, Philippines,
Poland and Uruguay will help to absorb new LNG supplies from
projects either starting or ramping up in Australia, including BG's
giant Queensland Curtis development, Indonesia and the Sabine Pass
in the U.S., BG said.
BG kept its forecast for global LNG demand growth at 5% a year
to 2025, driven by Asia. The rate is twice as fast as for natural
gas overall, the company said.
BG expects global LNG trade to exceed 400 million metric tons a
year by 2025.
Write to selina.williams at selina.williams@wsj.com
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