How competition is taking shape to lead the next wave of US LNG
More than a dozen proposed US LNG projects with serious development ambitions are all competing to start production in the 2022-2024 window. Combined, they account for well over 100 mmtpa of capacity in the initial phases of development. Almost all are in the Gulf Coast, yet they vary in terms of overall market readiness, project design and technology, and proposed commercial structures. The market will decide which of these succeed, but developer-specific qualities will be key. For example, those that have gas trading capabilities and can offer more support on feedgas procurement will appeal to customers wanting a more traditional tolling contract. While for more innovative contract structures, much will depend on the project team's ability to secure finance. Large companies may have greater technical experience and financial clout but could lack the strategic focus of smaller players for which developing their LNG project is their sole business.