How will the Covid-19 pandemic impact the LNG sector?

How will the Covid-19 pandemic impact the LNG sector?

The glut in liquefied natural gas (LNG) has been exacerbated due to the pandemic and global oil price shocks. It will not likely be as affected as other producing regions with higher break-even costs (e.g. Australia, US).. In the longer-term, the drop in oil prices combined with structural LNG oversupply will lead to a new scenario of sustained high liquidity and very low gas/LNG prices, which would impact economics and also make it much more complex to finance new developments leveraging long term contracts.. In the short term, the region will be affected by the current state of low oil and LNG spot prices.. In the more medium/long term, we can expect some difficulties to finance new LNG projects via long term contracts..