Insight
How to make money on the second wave of US LNG
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Despite the momentum surrounding new US LNG projects, it’s a fiercely competitive space for second wave project developers. The first wave of US LNG was sanctioned in a very different market environment – both globally and domestically. In reaction to changing market conditions and evolving buyer preferences, hopeful US LNG developers debuted new commercial offerings – most visibly with deals like NextDecade’s oil-indexed deal with Shell, Cheniere’s purchases from US producers Apache and EOG on international prices, or Tellurian’s upstream integration. But will these offerings revolutionize the US LNG industry? In this Insight, adapted from our presentation at September’s Gastech conference in Houston, we will explore: • Why developers are offering new commercial models; • The market opportunity for these offerings; and ultimately, • What it will take to be successful and make money on the second wave of US LNG
Table of contents
- Executive summary
- How will the first wave of US LNG make money?
- Changing market environment: developers need to be competitive
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How can the chasing pack be competitive in today’s environment?
- Upstream integration
- Minimizing supply costs
- Sharing the risk with US producers
- Conclusions
Tables and charts
This report includes the following images and tables:
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First wave US LNG capacity (mmtpa)Risk distribution of first wave US LNG projectsHenry Hub vs global prices ($/mmbtu, nominal)
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LNG project capacity by FID year (mmtpa)Permian supply, capacity and basisSouthwest Marcellus & Utica supply, capacity and basisUS Lower 48 production by company type
What's included
This report contains:
