The BG predicted that global LNG market volatility will increase

British Gas Group (BG) said in its annual liquefied natural gas (LNG) market outlook report that affected by appearance of the new source supply and new markets open in different periods, the volatility of global LNG market will be greater.

BG vice president Andrew Walker said, however, in spite of the mismatch between supply and demand of the market increase the volatility but because of the felling oill prices, LNG spot trading price range will shrink.


Walker said: "after four years of steady supply, we are entering into a supply growth period. The new additional supply will be sustained by Asia and six other emerging markets.

Six emerging markets including Egypt, Jordan, Pakistan, Philippines, Poland and Uruguay, will help to absorb the additional LNG supply, the new supply are mainly from Australia, Indonesia and USA.

BG still maintain the forecast that global LNG demand will increase5% annually before 2025, mainly driven by strong growth in demand from Asia. This growth is two times of the overall gas demand growth.

BG predicts that by 2025 the global LNG trade volume will exceed 0.4 billion tons / year