Diamond Gas International anticipates LNG glut in the years 2027-2028

Diamond Gas International CEO Diamond Gas said that a global glut of liquefied gas will be forecast between 2027 and 2028 after new projects are completed.

Takuji Knzo, at the FT Commodities Asia Summit, stated that the glut of supply will last only two to three more years, as Asia is expected to increase its demand.

He said: "It could end quite quickly... because we are seeing growth in LNG in the region, particularly in Southeast Asia, China, and South Asia."

Concerning fears that the Trump administration might implement tariffs and stop accepting U.S. LNG cargoes in China, Konzo stated that while cargoes might be rerouted, this would not impact LNG demand and supply.

"To me it's just a question of destination." "If China somehow stops buying from the U.S. then China must find an alternative supply somewhere," said Mr. Konzo.

Last year, the U.S. was the top LNG exporter in the world.

Analysts predicted in October that, if Trump is elected to a second term, U.S. exporters of LNG could face new challenges due to his proposed tariff of 60% on imports from China. They also said that Beijing might retaliate by imposing its own trade restrictions. (Reporting and editing by Jamie Freed in Singapore, Tom Hogue, and Emily Chow)

(source: Reuters)