LNG production capacity additions to 2021 now expected to be half previous estimates
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Combustion Industry News Editor
US LNG giant Cheniere Energy has said that it expects short-term investment in LNG production projects to fall markedly as a result of reduced global energy demand and increased stored fuel reserves. LNG demand growth has been strong in recent years (Chienere’s own income nearly tripled in the first quarter of this year) as countries such as China and India have looked for less-polluting fuels than coal, and major LNG producing countries including Qatar, the USA and Australia have been adding large amounts of production capacity. Cheniere now expects new projects in 2020 and 2021 to amount to 65 million tonnes of capacity rather than the 130 million that it had previously thought. Buyers are beginning to inform suppliers that they will not take delivery of cargos in the immediate future, which will be a particular concern for those companies that rely on short-term rather than long term contracts.