Time for the LNG market to separate myths from reality

The gap between perception and myth in liquefied natural gas is widening, with both buyers and suppliers appearing to subscribe to views that bear limited resemblance to reality.

This dynamic was very much in evidence at this week's Australian Gas Export Outlook conference in Brisbane, where buyers appeared confident that a wave of new projects would leave them spoilt for choice of supply, and at lower prices.

At the meeting, senior representatives from a major Japanese LNG buyer and an Indian buyer spoke of the increased supply expected from the United States, Canada and East Africa.

They spoke as if the proposed projects were all likely to become reality, and within the timeframes mooted.

This is very unlikely, and what appears to have happened is that project developers have proposed so many new plants that buyers seem convinced they are about to be swamped with offers.

The reality is likely to be far more sobering.