Increased flexibility in LNG contracts is expected to improve world energy security, but markets have far less surge capacity than commonly thought, the Paris-based IEA says. Global LNG developers brought 30bn m3/yr of new liquefaction capacity on line in 2011-16, but took 65bn m3 off line in the same period, IEA senior gas expert Costanza Jacazio told the Centre for Strategic and International Studies in Washington, DC on 27 January. Three-quarters of the off-line capacity was caused by a lack of feedstock, while the rest was the result of physical security problems, she said. "LNG markets have minimal swing production, and flexible contracts are key."
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