Crashing prices are putting LNG developers under huge pressure to cut the cost of their increasingly expensive liquefaction projects. They have been turning the screws on services companies - which are seen as a big part of the cost problem - but downward price adjustments will take time to filter through. And even then, LNG projects are unlikely to benefit to the same extent as, say, oil projects because they require highly specialized equipment made by just a few suppliers. As a result, developers are looking at other ways of bringing down costs, such as modular construction, standardizing equipment and floating LNG (FLNG).
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