LNG Contract Prices Expected to Drop: S&P Global

29 Apr 2024 CW Team

S&P Global forecasts a decline in liquefied natural gas (LNG) contract prices due to oversupply and overinvestment in the market. This projection reflects ongoing market dynamics influenced by factors such as increased production capacity and subdued demand growth.

The oversupply of LNG, coupled with significant investments in LNG infrastructure and production facilities, has led to an imbalance between supply and demand. As a result, LNG contract prices are expected to face downward pressure in the near term, presenting challenges for producers and suppliers.

The decline in LNG contract prices could have wide-ranging implications for stakeholders in the LNG value chain, including producers, exporters, and importers. Producers may face reduced revenues and profitability, while importers may benefit from lower procurement costs.

S&P Global's analysis highlights the importance of supply-demand dynamics and investment decisions in shaping LNG market trends. While oversupply poses short-term challenges, it also presents opportunities for market participants to adapt strategies and optimise operations to navigate the evolving landscape.

The projected decline in LNG contract prices underscores the need for market participants to closely monitor market developments and adjust strategies accordingly. Proactive measures, such as optimising production levels, diversifying markets, and exploring innovative pricing mechanisms, may help mitigate the impact of price fluctuations on business performance.

Overall, S&P Global's outlook on LNG contract prices reflects the complex interplay of supply and demand dynamics in the global LNG market. As the industry continues to evolve, stakeholders must remain agile and responsive to emerging trends to maintain competitiveness and ensure sustainable growth.

Infrastructure Transport

29 Aug 2025

Cabinet Clears Rs 123 Billion Rail Expansion Projects

The Union Cabinet on Wednesday approved four major railway infrastructure projects worth Rs 123.28 billion, including a new railway line connecting Gujarat’s remote Rann of Kutch and the Harappan archaeological site of Dholavira, as well as three multi-tracking projects across Karnataka, Telangana, Bihar, and Assam.The new line in Gujarat—spanning 145 km—will link Deshalpar, Hajipir, Luna, Vayor, and Lakhpat, establishing railway connectivity to significant cultural and religious landmarks such as the Dholavira site, Koteshwar temple, Narayan Sarovar, and Lakhpat Fort. Thirteen new stati..

Land Digitisation to Boost FDI in Realty Sector

India’s real estate sector is expected to witness renewed foreign direct investment (FDI) as the government advances its mission to fully digitise land records by December 2025. With global investors increasingly seeking stable and transparent markets amidst economic uncertainty and trade tensions, experts believe that India’s push for digitised land ownership will offer a major competitive advantage.As per Colliers data, India attracted Rs 483 billion (US$5.8 billion) in FDI into real estate during FY24. However, the first half of 2025 saw a 39 per cent year-on-year drop, with inflows fal..

Govt May Pay Rs 42–45 Billion to Toll Operators Yearly

While highway users may benefit from the introduction of the annual toll pass, the financial burden on the central government to compensate private toll operators could reach Rs 42–45 billion annually, according to rating agency ICRA.Passenger cars account for approximately 35 to 40 per cent of revenue for toll operators, with this proportion rising on highways near major metropolitan areas. The annual pass scheme, which offers flat-fee usage for frequent commuters, is expected to reduce direct toll collections from these vehicles, creating a shortfall for private concessionaires.ICRA noted ..