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Bargain basement

A global supply surfeit made 2016 a bad year to sell LNG but a good one to buy it

Everyone said the liquefied natural gas glut was coming. In 2016, it came. For many producers it was the bleakest year in memory. Supplies soared. Prices plunged. Consumers took control of the market, feasting on cheap cargoes and hassling exporters into generous new contract terms. American LNG set sail for the first time from the Lower 48. Australia's projects sent an armada of carriers towards Asia. Around 30m tonnes a year of new capacity had started up in the first 10 months of the year - a 10% increase. It was just the start of an onslaught that, by the end of 2017, will have added the equivalent of another Qatar to supply. Big importers - China, India, the EU and Latin American nati

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