The 15th World LNG & Gas Americas Summit was an amazing event that brought together over 200 people from all around the world. There were great insights, extensive collaboration, and lots of networking that occurred in the classes, the sessions, and the Summit events.
All the information was interesting and helpful, and it was obvious that the LNG industry is in major transition. Many sessions discussed their views on this transformation. The three key takeaways of note were:
Growth in the Market
LNG importing countries have tripled in number over the past decade which has to lead to 23 liquefaction trains due for startup by 2020 with 12 of those expected in the U.S. alone.
U.S. New Geography Outlook
The next wave of LNG is forecasted to be more cost competitive than the first with companies such as Cheniere, a Quorum customer, proposing a cost of around $8.0 MMbtu into Asia. This will continue to expand market opportunities for U.S. export in new and price sensitive markets such as China and India who are expected to have the largest LNG demand globally by 2025.
Buyer Changing Needs
New buyers in the Americas have unique needs when switching to LNG. Most include volume flexibility and managing financial risk. This is a real challenge for LNG sellers, but solutions are being found using FSRUs (Floating Storage Regasification Units) and new financing models to mitigate risk. Established buyers are responding to the global LNG oversupply with new attitudes towards operational flexibility and contracts to manage these requirements.
The Grand Finale
And to finish off a great event full of information, we had a fantastic bus tour of the Freeport LNG facility. With three liquefaction trains currently under construction, it was a great way to see how the U.S. LNG market is transforming from an import only market to export.
Interested in Quorum’s LNG management software? Visit www.quorumsoftware.com