LNG industry at the cross roads-I: Is there another boom and bust cycle likely?
Jan 27: The LNG industry today is at the cross roads 8Not only have many major liquefaction projects become operational in the past couple of years, but there is also a lengthy list of planned new projects, both in development and awaiting project sanction 8The 140 mtpa of liquefaction capacity under construction, along with a number of potential but yet-to-be sanctioned projects, would satisfy global growth expectations through 2035. These potential supply sources come from all around the world 8Therefore there exists a significant risk that the LNG business could enter another boom and bust cycle, repeating the current over capacity situation ten years or so down the road. Investors and developers will need to pay close attention to all parameters of risk mitigation and cost control if they are to move forward in this environment. Click on Reports for more