Changing Players, Changing Structures, Changing Strategies
The fundamental structure of the international LNG industry has remained largely unchanged for over 40 years. The model has recently begun to experience fundamental changes, heralding an exciting and turbulent future.
The previous model has been dominated by large companies exporting to customers in North Asia and Europe. The links between the upstream asset and the LNG plant, as well as the link between the plant owner and importer were strong and inflexible. Only these large companies had the financial, technical and project management skills to develop LNG export projects. Out of the 28 identified LNG “complexes” around the world operating pre-2015, all except three projects involved a large IOC as a sponsor or buyer of LNG following this commercial model. Looking forward from 2016, there are an unprecedented number of LNG projects proposed – but out of the projects likely to be sanctioned, nearly all of them do not involve the traditional IOC companies and follow non-traditional models. New players are able to access new sources of financing, freely available technology, and have realized that the project management record of large companies is less than stellar.
See the full presentation of this topic as presented by Vivek Chandra at ARGUS Australia and Global LNG Markets conference in Brisbane, Australia. The presentation can be downloaded by clicking here. To watch the recording London presentation please click here or on image below: