CHICAGO–(BUSINESS WIRE)–LNG, natural gas, and oil producers, oil and gas pipelines, and oil refiners will be pressured by low demand and falling oil prices in 2016, according to a new Fitch Ratings report.
“In addition to demand and pricing issues, the LNG industry is also facing new liquefaction capacity coming on line,” said Jelena Babajeva, Director. “Additionally, market dynamics may drive lower throughput across the value chain, including pipelines, LNG facilities and refineries, due to domestic oversupply of natural gas and tepid global demand for hydrocarbons.”
Key factors affecting oil and gas include:
Oil and gas projects in the Middle East are exposed to market risk and have seen a reduction in cash flows but remain resilient due to low break-even prices.
Pricing pressures in Asia may intensify with the development of new trading hubs, with incumbent producers protecting market share.
U.S. projects should be insulated from the impact of lower oil pricing due to the contractual price risk transfer to corporate counterparties.
For more information, a special report titled ‘Oil & Gas – 2016 Briefing’ is available on the Fitch web site at www.fitchratings.com.
Additional information is available at ‘www.fitchratings.com‘.
Oil & Gas – 2016 Sector Briefing
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=877913
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Contacts
Fitch Ratings
Federico Gronda
Senior Director
+0039 02879 087287
Fitch Italia S.p.A.
Via Morigi, 6
Ingresso Via Privata Maria Teresa, 8
20123 Milan
Italia
or
Greg Remec
Senior Director
+1-312-606-2339
or
Jelena Babajeva
Director
+44 203 530 1375
or
Christopher Joassin
Director
+1-312-368-3166
or
Media Relations:
Alyssa Castelli, +1-212-908-0540
alyssa.castelli@fitchratings.com