Seatrade Maritime is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

FID deferred on 74m tonnes of LNG liquefaction projects

LNG terminal_ (002).jpg
Since March LNG players have postponed Final Investment Decisions (FID) on at least 74m tonnes of liquefaction projects beyond 2020 due to the COVID-19 pandemic, according to Poten & Partners.

In a webinar on Wednesday Sophie Tan, Head of Asia Pacific Business Intelligence, Poten & Partners (Singapore) said that 228m tonnes of liquefaction capacity had been planned for FID this year. Since March FID on at least 74m tonnes of new liquefaction projects has been deferred. In particular projects in North America are seeing delays.

Tan said that major players had taken $70bn in investments off the table to conserve cash due to the weaker oil price and turmoil caused by the COVID-19 pandemic.

The spot market now plays a much greater part in the LNG supply chain accounting for around 30% of the market.

A shift in buying patterns is being observed. Tan noted Pavilion LNG in Singapore “really surprised” with a recent five-year supply tender that excluded greenfield projects. She noted the tender appeared to be aimed at portfolio players with an oversupply.

In Southeast Asia Tan said there would likely be see Force Majeure being declared on some contracts and some cargo deferments. These developments could lead to tighter winter season supply.

Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.