Limited recourse finance has been successfully utilized for financing LNG projects in the past.The slowing demand growth of the East Asian Buyers, combined with the emerging demand for theEmerging Market Buyers, makes it very likely that future LNG projects would be based on multipleoff-takes across both traditional and emerging market buyers. For the East Asian Buyers, the terms andconditions of off-take are expected to evolve towards shorter off-take periods, longer build-up periods andlarger downward quantity tolerance reflecting the increased competition on the side of the buyers whoneed more flexibility in their off-takes. This increased off-take flexibility will limit the source of debtservice, and therefore will arise as one of the critical issues in future LNG financing.As for the Emerging Market Buyers, the elements of the facilities in the LNG Chain which requiresfinancing have also expanded, and this will lead to a greater investment size and more complexcommercial structures.In this situation, finance will be an even more important issue for the successful implementation projects,and traditional LNG finance structures will have to be adjusted to accommodate the new issues that havearisen.
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