How coronavirus and the oil price crash will hit global LNG supply growth

Coronavirus and the oil price crash will have long lasting implications for global LNG supply. In the short term, maintenance is being deferred and some high cost projects are reducing production. Longer term, Coronavirus is creating challenges for construction of new projects both on-site and along the supply chain. The oil price crash is forcing operators to scrutinise their capital budgets and defer investments, creating delays to both new projects and additional developments at operational facilities. Consequently we are lowering our supply forecast, with the biggest impact in the 2025-27 period. Global LNG supply is likely to be at least 5% less in this period compared to our previous forecast.