Discoveries

A production bubble will expand worldwide LNG supplies in 2009. That’s according to Waterborne Energy, a Houston-based consulting group that specializes in LNG markets.

Waterborne’s president Steve Johnson says he expects that between November 2008 and December 2009, about 2.8 Tcf of new LNG production will be introduced into the market. 

Projects in Qatar, Russia, Nigeria, Indonesia, Yemen and Australia will come online during the period. Several are behind schedule already and are under tremendous pressures to begin production.

By the end of March 2009, new supplies of 117 Bcf per month will be available. This means abundant LNG will begin to significantly impact U.S. markets by next summer. Given the growth in domestic supplies from swelling unconventional natural-gas plays, we could see some gas-on-gas competition.

–Peggy Williams, Senior Exploration Editor, Oil and Gas Investor

pwilliams@hartenergy.com

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