BRUA pipeline resuscitated The fortunes of the “BRUA” natural gas interconnector pipeline may be improving,...Comments Off on CESEC to BRUA: “Got your back”
Because of the present overcapacity, global prices for LNG are just too low right now to send the price signals needed for investments into more liquefaction, say experts at a conference in Japan. And that means the industry could see a shortfall in a few years, according to an article on Reuters.
That means there may not be enough LNG for countries like Japan, which is the world’s biggest LNG buyer.
To avoid a shortfall, speakers like Total SA Chairman and Chief Executive Office Patrick Pouyanne called for more investment into LNG in the future, but investments in such projects can run in the billions.
LNG projects typically require billions of dollars of investment over many years of development. The industry has usually relied on long-term contracts linked to oil prices to ensure producers can get financing on favorable terms.