Small is beautiful
Flexible, floating regasification terminals, taking less LNG over shorter periods, are on the rise, taking advantage of cheap prices and abundant supply
WHILE funding for large liquefied natural gas-export projects is drying up, interest in floating import facilities is on the rise, making marginal buyers seeking more flexibility – and smaller volumes – an increasingly important source of demand. The popularity of floating storage and regasification units (FSRUs) is taking some in the market by surprise, particularly upstream majors that spent recent years paying out heavily on sizeable import facilities. Forecasters continue to expect strong growth in gas demand. The US Energy Information Administration (EIA), for example, predicts global consumption will rise by 50% by 2035, when it will account for a quarter of the world’s energy use. The
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