Exuberant investment in new gas reserves and liquefaction facilities in recent years helped globalize the market but also created a glut. Gas demand is expected to peak sometime in the next decade or two and then taper off slowly. Qatar, Russia and the U.S. are the key global producers most likely to be tempted to add significant LNG capacity. Long-term expectations for fossil-fuel price and demand have been trimmed this year, prompting producers to write down billions of dollars in oil and gas reserves. There is even a risk that some gas reserves become uneconomic to produce, particularly in the U.S., Russia and the Middle East.

Source: Mint December 25, 2020 05:01 UTC