This year looks set to be an important one for LNG. Global production is forecast to reach 292 mt in 2017, marking an increase of around 34 mt from 2016 – an unparalleled year-on-year rise. The lion’s share of additional production will come from the ramp-up of liquefaction plants commissioned in the US and Australia in 2016, though a fair amount of extra production is also expected from projects scheduled for start-up in 2017. But as sellers continue to grapple with an already well-supplied market, the crucial question this year is: will demand grow enough to absorb surplus production volumes as it did in 2016? If not, how will the market balance?
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