Liquified Natural Gases

For an industry that is just over 50 years old, liquefied natural gas (LNG) has matured rapidly and is now part of an upheaval in the global energy market. The liquefied natural gas trade has quadrupled over the last two decades and is set to double over the next two.

The liquefied natural gas (LNG) industry is in a state of flux even as it continues to grow, with a number of opportunities and threats facing the six principal business models that make up the market. Flexibility and nimbleness will be key for businesses to expand not just volumes, but also value. The fourth report in our LNG series explores how these business models may adapt to a complex industry environment—and how that environment could evolve:

  • There will likely be a pronounced “move to the middle,” as buyers and sellers look to increase marketing capacity.
  • Rising activity levels favor businesses that have developed extensive trading capabilities.
  • New trading hubs could expand and deepen spot markets, enabling increases in physical and financial trading.
  • Novel financing options and floating technologies could lead to more flexible contracts with shorter durations and creative pricing.