I’ve been doing some work on the concept that the 6 LNG plants currently under construction in North America and due for operation by end of 2025…there simply won’t be enough production and/or midstream capacity to deliver all that feedgas — and the output (LNG for foreign customers) is already contracted.
These are projects that are under construction — they’re coming. It’s new demand for natty that can’t be flexed. It’s fixed.
It’s interesting to me because regulators have permitted all these projects (good) but are allowing the market to dictate the supply response (to all this new demand), which could set up an epic supply/demand imbalance. That’s risky.
Abundance can flip to scarcity quickly. Has anyone here looked into this thesis?
These are projects that are under construction — they’re coming. It’s new demand for natty that can’t be flexed. It’s fixed.
It’s interesting to me because regulators have permitted all these projects (good) but are allowing the market to dictate the supply response (to all this new demand), which could set up an epic supply/demand imbalance. That’s risky.
Abundance can flip to scarcity quickly. Has anyone here looked into this thesis?
