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Friday, 15 October 2010

Barclays reduces 2010 LNG production forecast


QATAR DELAY: Barclays predicted a reduction in LNG productions after Qatar delayed two projects. (Getty Images)
QATAR DELAY: Barclays predicted a reduction in LNG productions after Qatar delayed two projects. (Getty Images)
Barclays Plc cut its forecast for liquefied natural gas production this year by as much as 27 percent as Qatar delayed two projects.
Global LNG production will increase by about 4 billion cubic feet a day this year, down from as much as 5.5 billion cubic feet a day estimated at the start of the year, the bank said in an emailed report on Tuesday. LNG output will rise by about 3 billion cubic feet next year, it said.
In a research note, New York based Barclays Capital analysts including James Crandell said: “The delayed start up of two key liquefaction facilities should push growth into 2011.”
The research note also said: “In our view, global LNG markets will be adequately supplied in 2011, but unlikely to run into an oversupply train wreck.”
Maintenance halted production at five Qatari LNG plants from April to July, according to the report. Qatar, the world’s largest producer of the gas chilled to a liquid, delayed the start of its last two LNG production plants.
Qatargas Train 6 and Train 7 are expected to start commercial operations in the first and second quarters of 2011 instead of this year, the bank said.

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