Since the seeds of a concept that ripened into LNG were sown by chemist Richard Doyle in the 1600s, the narrative of the market has undergone several rewrites. In today?s new chapter, stakeholders are trying to navigate a supply glut that has currently given buyers more power at the negotiating table than ever before. One skill is paramount in the rulebook of what is now the world?s second most traded commodity ? flexibility.

The LNG market is in the midst of a perfect storm. Global LNG production volumes climbed by 4 million metric tons on 2014 to 250 million tons in 2015, with an additional 125 million tons of LNG under development likely to come to market in 2017, according to consultants Wood Mackenzie. Yet, demand is weakening, with the international energy agency (iea) expecting natural gas demand to grow by 1.5% annually up to 2021 compared to the 2.2% annual growth reported over the last five years. asia?s appetite for LNG, which typically accounts for 70% of global demand, has particularly weakened. plus, oil prices ? oil-indexed LNG prices mean the market shadows oil price movements ? are unlikely to climb above $50 a barrel until at least mid-2017. Combined, these market pressures mean LNG prices could remain low until the early 2020s. 