LNG

IOCs take on LNG supply risk to ease boom and bust

Companies are offtaking increasing volumes from their own liquefaction projects to avoid market tightness by the mid-2020s Companies are offtaking increasing volumes from their own liquefaction projects to avoid market tightness by the mid-2020s
By Andrew Walker 17 October 2018 0 32937
The Tangguh LNG project. (©BP plc)

IOCs are increasingly acting as offtakers to underpin new LNG projects in an effort to manage the market’s boom-and-bust cycles, delegates at CWC’s Asia Pacific Summit in Singapore heard on Wednesday. 

Executives expressed concern that high prices triggered by a lack of supply would see LNG lose out to alternatives such as coal and renewables if action is not taken. A number of Asian countries could be discouraged from developing or expanding their LNG capacities, restricting the market’s size.

BP’s decision to act as the sole offtaker...