How to Tack into Near-term LNG Headwinds

How to Tack into Near-term LNG Headwinds
The global LNG market faces near-term challenges as it undergoes sweeping changes. A recent Deloitte report outlines how LNG players can weather these near-term demands and prosper in the long term.

Sweeping changes are underway in the global liquefied natural gas (LNG) market. LNG supply contracts are becoming more flexible, deviating from the traditional high-volume/long-term/point-to-point model. LNG supply and delivery technologies are becoming more modularized – and hence more affordable for a greater number of players. Not only are more LNG producers getting into the business, but the customer base is becoming more diverse as smaller-scale buyers increasingly enter the market.

"The transformation of global LNG markets is underway, and the future is expected to look very different from the past and present," according to Andrew Slaughter, managing director of the Deloitte Center for Energy Solutions.

In a recent Deloitte report, "Navigating the new world of LNG," Slaughter observes that a number of near-term "headwinds" – slowing demand growth, capacity expanding faster than demand and lower LNG prices – will test longstanding and new market players alike over the next few years. Companies that adjust to a more fragmented market with evolving customer expectations and more short-term and flexible arrangements will prosper in the longer term, he added.

Slaughter recently discussed the Deloitte report with Rigzone. Listen to the audio clip below for the conversation.

Deloitte's Andrew Slaughter discusses the changing LNG industry with Rigzone's Matthew Veazey.

Matthew V. Veazey has written about the oil and gas industry since 2000. Email Matthew at


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.


Our Privacy Pledge

More from this Author
Matthew V. Veazey
Senior Editor | Rigzone
 -  BLOG: Rigzone's Downstream Coverage St... (May 24)
 -  Fuel Theft Report Exposes '800-pound G... (May 23)
 -  BLOG: Rigzone's Downstream Coverage St... (May 23)
 -  Where Did Top Downstream Execs Go To C... (May 22)
 -  The Right Downstream Role for You: A R... (May 18)

Most Popular Articles

From the Career Center
Jobs that may interest you
Operations Manager
Expertise: Chemical Engineering|Mechanical Engineering|Project Engineer
Location: Philippi, WV
Bolt Service Technician
Expertise: Mechanical Technician
Location: La Porte, TX
Director of Contracting
Expertise: Contracts Engineer|Refinery Specialist
Location: Salt Lake City, UT
search for more jobs

Brent Crude Oil : $53.96/BBL 0.35%
Light Crude Oil : $51.36/BBL 0.21%
Natural Gas : $3.209/MMBtu 0.34%
Updated in last 24 hours