The LNG industry is venturing into new territory as it approaches an unprecedented wave of expansion.
The LNG industry is venturing into new territory as it approaches an unprecedented...
The liquefied natural gas (LNG) industry is venturing into new territory as it approaches an unprecedented wave of expansion. While there are technical challenges, more important are the non-technical challenges, including budget and project overruns, a limited pool of skilled labor, high capital costs, competition from other projects, pricing, increased regulatory burden, complex contractor relationships, infrastructure and supply chain issues, and insufficient 'big picture' government engagement.
Delivering new LNG projects successfully requires strategic project framing from the start, strong governance, holistic operating models, creating a risk management culture, proactive internal and external stakeholder management and alignment, supply chain planning, as well as ensuring regulatory and human resource considerations are central.
The LNG market remains an illiquid market, where trading based on long-term contracts with inflexible contractual terms is the mainstream.