© Reuters. Record LNG capacity poised for approval in 2019 amid strong demand
- Analysts say a record amount of liquefied production likely will get a green light this year amid strong global demand, especially from China.
- A final investment decision could be taken on more than 60M metric tons/year of LNG capacity in 2019, well above the previous record of 45M tons in 2005 and triple last year’s 21M tons, according to Giles Farrer, Wood Mackenzie's research director for global gas and LNG.
- "Now is a good time to invest," Farrer says. "If you look at industry costs, they have really come off a cliff from 2-3 years ago. So if you’re investing now, you’re investing in the bottom of the cost cycle."
- Three U.S. projects poised for FIDs this year are Qatar Petroleum’s Golden Pass joint venture with Exxon Mobil (NYSE:) and ConocoPhillips (NYSE:), Venture Global LNG’s Calcasieu Pass project and Cheniere Energy’s (NYSEMKT:) Sabine Pass train 6, the consultancy says.
- Strong gains in China’s demand growth as part of a program to shift households and factories from coal to gas, increased LNG import dependency in Europe, and a backlash against dirtier coal are driving optimism in the industry.
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