May 2009
On the liquefaction side, the LNG industry has been dominated by international oil & gas majors both as project sponsors and as operators. Their experience, large balance sheets, access to markets and ability to underpin construction and offtake have been critical to successfully financing these large undertakings. As the industry matured and lenders became more comfortable with LNG market risks, the contracts underpinning liquefaction projects became increasingly flexible. Recent projects sponsored by supermajors have incorporated netback pricing, destination flexibility, spot market sales, and other arbitrage opportunities, even as the market faces credit constraints and construction challenges.
Read more of this White Paper prepared for Gastech 2009.