Several New LNG Projects Must be Initiated in 2019

The majority of LNG-focused oil and gas professionals believe several new LNG infrastructure projects will need to be initiated this year to ensure supply can meet demand after 2025.

That’s according to a new report published by DNV GL, which also revealed that more than two thirds of these professionals think price uncertainty is limiting investment in LNG megaprojects.

More than a third of LNG-focused oil and gas professionals expect the United States to experience the greatest growth in LNG exports over the next three years, according to the report. China is the country expected to have the greatest growth in LNG imports over the next three years.

“The new era we see emerging for the LNG sector will demand new thinking from our industry to ensure that a rapid evolution in demand and supply can be met,” Hans Kristian Danielsen, senior vice president and marketing and sales director at DNV GL Oil & Gas, said in a company statement.

“Our research shows signs of the sector opening up to new players, contracting models and pricing strategies. As reservations over capital spending and uncertainty over LNG pricing persist, the study reveals increasing interest in the sector finding more agile and flexible approaches to LNG production and trading,” he added.

DNV GL’s latest report draws upon a global survey of 291 senior LNG professionals, conducted in December 2018. The report also includes findings from DNV GL’s annual study on the outlook for the oil and gas industry, based on a survey of 791 senior oil and gas professionals, conducted during late October and early November 2018.

DNV GL describes itself as a global quality assurance and risk management company. The company has office locations in Europe, the Americas, the Middle East, Africa, Asia, Australia and New Zealand, according to its website.