Considering the number of projects under progress, Papua New Guinea-based energy producer Oil Search has warned that there could be an oversupply of Liquefied Natural Gas (LNG) in coming years.

Talking to media, Chief Executive of the company Peter Botten said that the competition to supply LNG would intensify down the line with many companies eyeing for the same rights. "There is undoubtedly the potential for oversupply and there are a number of reasons why that may or may not take place," he said.

However, he added that recovery of the world and growth of Asian economy would play a major deciding factor.

Australia expects to see two major projects, the Gorgon gas project and the Wheatstone project, to come online in the next six years. While the first one is scheduled to start production in 2014, the latter would start in 2016.

The $43 billion Gorgon project would be one of the biggest projects so far as it is believed to have nearly 40 trillion cubic feet (tcf) of gas.

The $16.7 billion Papua New Guinea LNG project was also expected to start in 2014. Oil Search owns 29 per cent equity in the project that contains over nine tcf of LNG.