Slow growth predicted for LNG output
Natural gas production to grow at slowest pace in 28 years
By Tom Stundza -- Purchasing, 12/3/2008 8:02:00 PM
Liquefied natural gas production is increasing at the slowest pace in 28 years because of equipment breakdowns, reduced gas supplies and delays in new projects, London-based consultant Andy Flower tells the Bloomberg News Service.
When final supply totals are audited, output may rise less than 2% this year from 172.6 million metric tons in 2007, says the former executive with BP's LNG business. He also slow-growth supply expansions in 2009 as well because global credit problems will short-circuit project approvals next year.
LNG production expanded 7.3% in 2007 but 2008 growth has been stymied this year by delayed commissioning of new ventures in Qatar, Russia and Yemen, technical problems in Algeria and Norway, and limited gas supplies to feed liquefaction plants in Nigeria and Egypt.
Flowers believes output may climb about 25 million tons in 2009 and 2010, after the world financial crisis ends, when new projects start operations in countries including Qatar, Yemen, Indonesia and Australia.
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