So what does this mean for the future of LNG?
While the global response to COVID-19 has impacted short-term demand, expectations are that this is a blip on an otherwise positive, long-term outlook.
Natural gas demand is predicted to fall by around 3% in 2020, then make a robust recovery, according to the International Energy Agency.
LNG is, and will remain, a high-growth industry based on a growing economy worldwide, particularly in Asia, with a desire for secure, affordable, and cleaner-burning fuels,” Douglas Wharton, vice president of Cheniere Marketing, told the Gastech industry event which was held virtually in 2020.
The decision by U.S. producers to delay new export facilities is understandable given the circumstances, but would also appear to be short-sighted. The industry can only hope that, while the prospect of supply-and-demand forces conspiring to inflate LNG prices in the short-term is very real, it will only be a matter of time before market forces encourage natural gas suppliers to get investment flowing again.