Vitol’s head of LNG expects supply shutdowns due to market glut
Unprecedented – maybe. But most certainly not unexpected. Most companies have chosen to ignore this impending reality for years, and so they did not prepare properly. Now what? Shutdowns? Does he know what that means? I mean, a shutdown of a liquefaction train is by no means cheap. And its most certainly not simple. People think that you flick a switch and that’s it. reality is far from that. That’s a complex process that’s drawn out over weeks, maybe months. It needs planning and exposes the sensible technology to risk you don’t want to face just because you had a bad day. I expect most terminals to continue producing and send whatever the market does not swallow into Europe. That’s what I said almost 4 years ago in the Battlefield Europe report, and tats what I say today.
Vitol Group’s head of liquefied natural gas trading said on Wednesday that the outlook was bleak for LNG in the short term due to an “incredibly” oversupplied market, which would lead to some LNG output shutdowns.
