Market Challenges: High cost of development

The LNG market faces several challenges. The infrastructure required to transport and regasify LNG is expensive to develop which hampers growth of new importing regions. Volatility in prices makes long term contracts difficult for consumers. Geopolitical tensions can disrupt supply if exporting and importing nations are involved in conflicts. Environmental concerns around fugitive methane emissions during production and transportation are mounting.

Market Opportunities: Growing energy demands

Growing energy demands particularly in Asia are driving the need for more imports of natural gas. Several new LNG producing projects are in the works to exploit newly accessible reserves to meet this rising demand. As infrastructure expands to new markets, economies of scale will help lower transportation costs and promote further growth. The flexibility of LNG allows it to facilitate switching between different energy sources to complement renewable additions.