• Analysts: U.S. LNG Supplies Not Expected in Asian Markets Anytime Soon
  • July 15, 2016
  • Law Firm: Eversheds Sutherland (US) LLP - Washington Office
  • Citibank analysts predict that with the current glut of LNG in the global market and resulting low prices, U.S. LNG supplies will not be shipped to Asia anytime soon even with the widened Panama Canal. The widened canal can now accommodate larger ships carrying LNG. “The Panama Canal expansion, inaugurated on June 26, was once expected to be a game changer for U.S. LNG exports to Asia... [b]ut against the backdrop of this major transition in the global LNG market, the prospects for U.S. LNG into Asia via the expanded canal look less promising, at least in the short-term.” The report projects that U.S. LNG will stay in the Western Hemisphere for the near future since it will not be profitable to ship the supplies all the way to Asia.