Seasonality

20 March 2017: Past LNG Shipping opinions have discussed at length the recent and expected growth in global LNG trade per annum and how many LNG carriers are needed to transport these volumes. But annual figures ignore the seasonal nature of the LNG market, and supply-demand fundamentals vary significantly throughout the year across the entire LNG value chain. Whether due to higher LNG production during cold periods or increased natural gas demand for residential heating or cooling, seasonality inherently brings volatility to the LNG market. If there is enough capacity to fulfil peak demand then infrastructure will be underutilized during non-peak periods. Alternatively, if there is not enough capacity, bottlenecks can arise and prices spike. Please fill out the following form to access the full article.