More liquefied natural gas (LNG) coming into the market will keep prices depressed despite an increase in demand from Asia, analysts said.
LNG producers are ramping up from Qatar to Australia and the United States, while Egypt is expected to emerge as a new export player.
Australia has increased its market share in the first half of the year to 20 per cent from 12 per cent last year, according to BMI Research, and its exports are forecast to grow by 23 per cent over the financial year to the end of June, according to Australian energy advisory firm, EnergyQuest.
“Over FY17, production increased from almost every Australian LNG project and both Western Australia and Queensland boosted their state outputs to higher levels,” said Graeme Bethune, EnergyQuest chief executive.
Asian demand for LNG is fuelling the market, but that surge may be short-lived. Australia supplied 44 per cent of Chinese LNG imports, 31 per cent of Japan’s and 21 per cent of South Korea’s imports, according to BMI Research.
Analysts agree that South Korea, the world's No. 2 LNG importer after Japan, will continue to experience an uptick in demand over the short-term, which will help producers such as Australia and the United States.
BMI Research said that US LNG is thriving as the expansion of the Panama Canal has helped North American shipments to North Asian markets become more cost-competitive. South Korea’s imports are set to grow at an annual rate of 1 to 2 per cent as president Moon Jae-In plans to phase out coal and nuclear-fired power stations.
Mr Moon has temporarily closed 10 older coal plants and halted the construction of two nuclear facilities. BMI said that the loss in coal and nuclear generation capacity will be offset by a comparable increase in generation based off natural gas and renewable energy sources.
However, UK consultancy Energy Aspects geopolitical analyst, Richard Mallinson, said that it would take awhile to fully enact Mr Moon’s plans to slash coal and nuclear power in the country. “We expect LNG imports to increase by around 7 per cent in South Korea based on the strength so far and the need to refill stocks ahead of winter,” he said. “But next year, we think imports will fall as a number of new coal power plants are coming online by the end of this year.”
In addition, Qatar, the world's biggest LNG exporter, has announced plans to ramp up its production, though questions surround the economics. The country said it plans to increase its LNG exports by 30 per cent over the next five to seven years after removing the moratorium on development of the giant North Field.
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Read more:
LNG shipping logjam for Qatar
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Energy Aspects expects half of the Qatar's target capacity additions, up to 12 million tonnes per annum (Mtpa) by around 2021, to come from debottlenecking existing trains while new trains will be needed to deliver the remaining target. However, Qatar may face issues securing long-term offtake agreements, which means that the country and its partners will take on merchant risk. "In the current market environment, Qatar is not likely to find long-term buyers for 25 Mtpa of liquefaction capacity. But taking all that merchant risk means that other LNG projects, such as in Western Canada, East Africa or even the southern US will face an even more difficult environment to place supply," Energy Aspects said.
And with this excess supply flooding the market, Egypt looks to shift from an importer to exporter with the Zohr field. The mega gas discovery, is expected to start producing 1 billion cubic feet (bcf) this year ramping up annually until it reaches 2.7bcf a day at the start of 2019.
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Read more:
Egypt will focus on deepwater gas finds
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Mr Mallinson said he expects the new supplies to keep prices depressed. “Australia and the US are the main sources of incremental LNG, but once the Zohr field starts this year, it will accelerate the process of turning Egypt from an LNG importer back into an exporter,” he said. “But there is healthy demand growth in several regions and the outlook for 2018 has improved to the extent that we no longer expect prices to fall far enough to close the export arbitrage for US LNG going into international markets for much of next year.”
PREMIER LEAGUE FIXTURES
Tuesday (UAE kick-off times)
Leicester City v Brighton (9pm)
Tottenham Hotspur v West Ham United (11.15pm)
Wednesday
Manchester United v Sheffield United (9pm)
Newcastle United v Aston Villa (9pm)
Norwich City v Everton (9pm)
Wolves v Bournemouth (9pm)
Liverpool v Crystal Palace (11.15pm)
Thursday
Burnley v Watford (9pm)
Southampton v Arsenal (9pm)
Chelsea v Manchester City (11.15pm)
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
Sui Dhaaga: Made in India
Director: Sharat Katariya
Starring: Varun Dhawan, Anushka Sharma, Raghubir Yadav
3.5/5
RoboCop%3A%20Rogue%20City
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Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
Cryopreservation: A timeline
- Keyhole surgery under general anaesthetic
- Ovarian tissue surgically removed
- Tissue processed in a high-tech facility
- Tissue re-implanted at a time of the patient’s choosing
- Full hormone production regained within 4-6 months
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
What can you do?
Document everything immediately; including dates, times, locations and witnesses
Seek professional advice from a legal expert
You can report an incident to HR or an immediate supervisor
You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline
In criminal cases, you can contact the police for additional support
Juliet, Naked
Dir: Jesse Peretz
Starring: Chris O'Dowd, Rose Byrne, Ethan Hawke
Two stars
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
57%20Seconds
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How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
Allardyce's management career
Clubs (10) - Limerick (1991-1992), Perston North End (1992), Blackpool (1994-1996), Notts County (1997-1999), Bolton Wanderers (1999-2007), Newcastle United (2007-2008), Blackburn Rovers (2008-2010), West Ham United (2011-2015), Sunderland (2016), Crystal Palace (2016-2017)
Countries (1) - England (2016)
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
