LNG industry at the cross roads-II: New business models and technological changes will gain momentun
Jan 27: The overall outlook continues to be positive for the LNG business but the current business model structure is too limited to fully take advantage of the potential 8Today, the market is mainly large producers and larger buyers with few intermediaries or smaller players. 8In the future, portfolio suppliers and traders will become more important, buyers will have an increasing ability to re-sell, swap or trade cargoes, trading and market hubs may emerge and new business models will be developed to meet new and expanding market needs. 8The era of the dominant, large-scale, long-term bilateral supply contract may be coming to an end, and this will force the traditional big players in this space to reinvent their LNG strategies. Technology will open the door 8Technology will open the door to new types of supply development – whether it is floating liquefaction allowing access to more remote sub-sea natural gas resources or small modular liquefaction units designed for smaller resource size, or floating regasification providing a lower cost route to supply new geographical markets. 8Technology on the demand side is opening up new end-uses for various modes of transportation, as well as new power generation applications. Click on Reports for more