EQT CEO: US could experience LNG oversupply between 2027 and 2029

Toby Rice told reporters on Thursday that the U.S. may experience a glut of liquefied gas in 2027-2029 but it will be tightening by 2030. Rice spoke on the sidelines a conference held in Houston. Patrick Pouyanne, CEO of TotalEnergies, warned in a recent statement that if all U.S. gas projects are completed as planned there could be a glut on the market. According to the U.S. Energy Information Administration, the U.S. will be the top LNG exporter in the world this year with a total annual capacity of 115 million tonnes.

Rice said that EQT has timed its exposure to LNG market for the expected market conditions. The company signed a contract with Commonwealth LNG earlier this month to secure a liquefaction capability of one million tonnes per year (MTPA). Rice's comments echo those of Woodside Energy's (WDS.AX), CEO Meg O'Neill who, on Monday, dismissed concerns over potential oversupply. She said that demand will likely grow by 50% in the next decade.

Uday Turaga of energy consulting and research firm ADI Analytics said on the sidelines in Houston, that "there may be brief periods of excess supply, but the market is largely able to absorb LNG, and we do not see any reason for that to change."

He added that "prices for LNG may drop, especially to Asia as more supply is brought online. These lower prices should attract new customers." (Reporting and editing by Nathan Crooks, Paul Simao, and Arathy S. Somasekhar from Houston)

(source: Reuters)