Floating LNG Import Projects— The Next Small Thing
The liquefied natural gas (LNG) market has reached a decisive point in its development. LNG supply is increasing from Australia and new supply will soon be available from North America. Meanwhile, demand in the traditional gas-consuming markets is stalling. The question is: How will the industry react to these changes?
On the supply side, Australia is set to become the world’s largest LNG exporter, surpassing Qatar’s output of 77 million tonnes per year by the end of the decade. Over the same time period, North America will add nearly 60 million tonnes per year of supply from new projects in the Gulf of Mexico and potentially elsewhere. Most of these projects were conceived and approved at a time of sustained high oil and gas prices. Demand for gas at that time, particularly in China, was expected to continue increasing rapidly. However, the world today is very different.