An uncertain outlook for LNG supply and demand and what this means for FSRU and FLNG investment opportunities

At Flame Virtual between 12-13 October, Giles Farrer, Head of Gas and LNG Asset research, gave a presentation on LNG supply and demand fundamentals and the implications for new FSRU and FLNG investments. The slides are attached to this report. Low prices are driving new regas development in several markets around the world, like Vietnam, Myanmar, Brazil and the Caribbean. LNG is being targeted at the power sector, but demand is also being supplemented by the emergence of small scale value chains. The outlook for new FLNG developments appears bleak. However, smaller nimble opportunities may be preferred in a capital constrained world. FLNG solutions could appeal to developers who prefer investment opportunities which limit their capex exposure and pay back quicker given energy transition concerns.