Dec 3, 2024 : Rising terminal costs make new US projects less competitive
LNG analysts at Poten & Partners predicted on Tuesday.
Rising LNG terminal costs to make new US projects less competitive, says analyst - Reuters
Harbour Energy signs participation agreement for proposed liquefied natural gas export project in Argentina - Press Release
Gazprom Hits Maximum Capacity of Pipeline Gas Flows to China - Oil Price
Exxon Hasn’t Given Up on Shallow-Water Block Offshore Guyana - Oil Price
Algeria launches $2.3 billion project to maintain output from giant gas field - Upstream Online (Subscription)
U.S. gas surplus likely to be eliminated before winter ends - JKempEnergy
Russian Crude and LNG Exports to Asia Set for Small Drop in 2024 - Oil Price
India: LNG Imports Rise 10.8% in October as Domestic Gas Output Drops 1.6% - Construction World India
Russia’s crude oil and LNG shipments to Asia slip slightly in 2024 - Reuters
Vortexa: LNG freight prices are facing pressure - Safety 4 Sea
$1.3 billion lawsuits for damages arising from explosion at US LNG facility thrown out of court - Offshore Energy
Cargo Shipment from Belgium to Russia Highlights Continued Flow of LNG Technology from EU - High North News
Slumping Australia Energy Stocks Eye Rebound as Projects Ramp Up - Bloomberg
Top 5 Micro LNG Themes
1. LNG Infrastructure Expansion and Project Delays
Australia: Santos and Beach Energy projects are set to begin production in 2025 after delays. Woodside Energy focuses on U.S. acquisitions and clean ammonia projects to diversify. Read More: Bloomberg here.
Argentina: The FLNG Hilli project by Golar LNG and Harbour Energy's participation in Vaca Muerta aims to establish Argentina as a significant LNG exporter. Read More: Offshore Energy here.
2. Geopolitical and Regulatory Shifts Impacting LNG Trade
Geopolitical tensions and sanctions are reshaping LNG trade flows and competitiveness:
Russia: Sanctions challenge LNG technology supply while exports to Asia face slight declines. Russia strengthens ties with China through maximum pipeline gas flows and LNG exports. Read More: High North News here. Read More: Oil Price here.
India: LNG imports are rising as domestic gas production declines, reflecting growing reliance on global suppliers. Read More: Construction World India here.
3. Freight Market Dynamics
Rapid fleet growth and weak demand have suppressed LNG freight prices. However, longer routes due to U.S. exports to Asia and geopolitical disruptions may drive tonne-mile demand:
Fleet Growth: A record 52 LNG carriers were delivered in 2024, with an additional 89 expected in 2025, outpacing demand. Read More: Safety 4 Sea here.
4. Emerging LNG Trading Hubs
Key regions aim to dominate LNG trading, driven by strategic infrastructure and market dynamics:
China: Efforts to position itself as an LNG trading hub include significant infrastructure investments and competitive supply chain development. Read More: Petroleum Economist here.
5. Legal and Financial Resolutions in LNG Operations
Legal battles and financial restructuring remain critical for LNG project continuity:
Freeport LNG: U.S. courts dismissed $1.3 billion lawsuits over the 2022 explosion, reinforcing risk allocation provisions in contracts. Read More: Offshore Energy here.
Bangladesh: Expressions of interest from 34 global firms for spot LNG supply highlight competitive procurement strategies. Read More: The Financial Express here.