Risk sharing and smaller modular liquefaction facilities take on the challenge to keep supply contracts flexible
The flexible delivery LNG market is evolving very quickly and its annual share is likely to go up every year. 8Inadequate tie-up of long-term contracts will delay final investment decisions for new liquefaction plants. 8Then again, in the face of a larger demand for flexible supplies, liquefaction plants are also setting up more demand responsive facilities. 8A number of smaller modular liquefaction plants are coming up as are floating liquefaction units. 8Risks are now sought to be shared instead of borne alone. ENI, the developer of the Coral facility in Mozambique, chose to contract all 4.6 bcm of its capacity to BP, a portfolio player, rather than trade the LNG directly itself. Click on Reports for a whole lot of data on the global LNG industry and the hurricane speed at which it is evolving.