According to Edinburgh-based Wood Mackenzie Consultants, the combination of record surplus and lower prices in the LNG sector has led to smaller profit margins for LNG producers.
Frank Harris of the consultancy said that new projects in Qatar, Yemen and Indonesia would reach capacity in 2010 and that ventures planned for 2015 to 2020 may be forced to sell fuel for less due to supply exceeding consumption.
"There's a lot of surplus this year," commented Mr Harris in a report by Seatrade Asia. "Next year will be worse and it may peak in 2011."
He added that it was probable that the surplus would taper off since fewer projects were approved in the past three years.
