In a new insights video released today by Baker Botts L.L.P., an international law firm, Steven Miles, Chair of the LNG Practice, examines the key Global LNG trends over the past twelve months, and highlights the most topical issues and market opportunities to watch out for in 2018.
Key Global LNG trends:
- 12% Growth in LNG production in 2017 produced an abundance of supply.
- A buyers’ market drove innovation and creativity on the seller side — e.g. LNG-to-Power projects and FSRUs.
- But worldwide GDP growth and higher oil prices in 2018 are increasing LNG demand, leading to a need for increased investment and a heightened focus on launching new projects in order to avoid a shortfall in 2020 – 2024.
- The search for creditworthy buyers with volume will continue, particularly in Asia.
- Renewables and LNG can partner together to achieve countries’ and companies’ clean energy goals.
- Buyers are seeking new business and contractual models to match their business objectives.
Steven Miles, Partner in the Washington D.C. Office, said “Some have suggested that the era of long-term LNG supply contracts is over, because buyers can buy LNG in the spot market. We do not agree. In our work around the world, we see continuing interest by both buyers and sellers in the security and financeability that long-term contracts provide.”
Read the article online at: https://www.lngindustry.com/floating-lng/26032018/baker-botts-examine-2018-global-lng-trends/