Nigeria LNG - Will its potential be realised?

摘要

While the wave of new liquefaction plant start-ups in Australia and the US is the focus of much current comment and analysis, less attention has been given to the issues which longer-established LNG projects face in a market which is likely to see major changes over the next few years. Atlantic Basin producers, in particular, will face new forms of competition from US LNG exports, and also from Asia Pacific volumes displaced from Asian markets by flagging demand combined with a surge in production. Nevertheless, long-established Atlantic producers enjoy a potentially strong competitive position, due to their cost base, given that much of their plant’s capital costs have been paid back, and so the capital charges, which make up most of the cost of liquefaction, are much lower than for new projects.