Shifting LNG Market to Challenge Liquefaction Project Financing
13 April 2017: ” The LNG market continues to evolve from its relatively simple beginnings – when buyers signed up to long-term contracts and LNG cargoes went directly from the seller to the buyer – to one with greater flexibility, liquidity and complexity. This shift will be a challenge for sponsors trying to finance multi-billion dollar liquefaction projects, because they may be unable to rely on long-term contracts with investment grade customers to the same extent as they have in the past. Yet at the same time, the LNG market’s evolution is incomplete and it is not known whether the market can support liquefaction plants operating on a partial or full merchant basis.”
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