| $44.15 | 7/7/2017 | 07/07/2016 | 07/07/2015 | 07/07/2014 | 07/07/2013 |
|---|---|---|---|---|---|
| Active Rigs | 58 | 30 | 75 | 189 | 188 |
RBN Energy: developing new liquefaction capacity in an era of LNG oversupply.
The international spot price for liquefied natural gas (LNG) has been steady-as-she-goes the past few months, within a few dimes of $5.50/MMBtu, but that stability belies the upheavals the LNG industry continues to experience.
The old paradigm of long-term contracts and milk-run deliveries from supplier to buyer is breaking down. New Australian and U.S. liquefaction capacity is coming online fast and furious, exacerbating the global LNG supply glut, and Qatar — the world’s largest LNG supplier, just announced plans to increase its output by 30%.
With LNG readily available and priced to sell, new LNG buyers are entering the fray, developing natural gas-fired power plants that will be fueled by imported LNG. What does all this mean for the next wave of U.S. liquefaction projects and for natural gas producers in the Marcellus/Utica and the Permian? Today we continue our look at the topsy-turvy LNG sector.
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