A wave of new LNG supply will change who wins in gas
For most of this year, the conversation about liquefied natural gas (LNG) has been about scarcity: the Strait of Hormuz , force majeure , rerouted cargoes, buyers in South Asia priced out of the market. That disruption is real, and it has not gone away. But it is the wrong lens for the decade ahead. Look past this year's headlines and the market is heading somewhere else. New liquefaction…
In the current decade, the liquefied natural gas (LNG) market is transitioning from one characterized by scarcity to one marked by abundance. Key shifts are reshaping the landscape. Not only has the market witnessed increased sophistication among players, but competition has also shifted from entrenched positions within a single chain to competition between alternative chains.
Furthermore, the system's complexity is escalating as the market's allocation is no longer guaranteed. A shipment's availability does not assure its financability, shippability, receivability, or buyer suitability. The countries heavily reliant on Gulf supply recently discovered this reality. In this dynamic environment, speed is crucial, but it must be coupled with an in-depth understanding of the commitments involved.
The ability to make decisions swiftly while precisely comprehending the implications, both physically, commercially, and financially, is a significant differentiator. However, building such capabilities can be challenging, especially for organizations that have not been designed to function in this manner. Despite the current models' effectiveness, relying on them may not ensure competitiveness.
The models that were successful in the past are not guaranteed to continue doing so in the future. Thus, it is imperative for organizations to understand their dependencies and possess the necessary capabilities to navigate and thrive in the evolving LNG market.
Written by urgent.news from The National Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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