Australia’s LNG Market Faces Oversupply Threat

Global LNG markets are expected to achieve a 40 percent increase in supply until 2028.

A general view of Chevron's Wheatstone LNG facility in Pilbara coast, Western Australia. Chevron/Handout via Reuters

An impending slump in exports and diminishing returns on investment threaten Australia’s liquefied natural gas (LNG) industry as global markets head towards a supply glut. 

In a new report by the Institute for Energy Economics and Financial Analysis (IEEFA), analysts found that unprecedented increases in low-cost producer supply and weak demand growth contribute to a potential LNG oversupply.