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Editorial Comment

Between mid-2019 and mid-2020, the amount of LNG terminal capacity in construction around the world more than doubled. Combined, the CAPEX for LNG export and import projects in construction has increased from $82.8 B to $196.1 B. However, the COVID-19 pandemic has jeopardized the fate of LNG and FLNG export projects in the pre-construction stages.

Due in part to this cost inflation amid the current economic volatility, final investment decisions (FIDs) or construction for at least two dozen LNG export projects have been canceled or postponed by 1 yr–2 yr. Some of these projects will be reexamined for FID in 2021, while investment will continue for the record number of LNG projects that took FID in 2019. Most analysts expect that the only export project with a chance of taking FID this year is the Costa Azul LNG terminal in Mexico.

Future FLNG investments also look increasingly difficult due to low LNG spot prices amid an ongoing LNG supply glut. As of mid-2020, five operating FLNG vessels represent 16.6 MMtpy of LNG import capacity, or 3.8% of global LNG export capacity in operation. Eleven projects in development make up 88.2 MMtpy, or 13.1% of total LNG export capacity in development. Orders for one to four FLNG vessels are possible over the next 5 yr, with projects ranging from small liquefaction barges to turret-moored processing and liquefaction units.

For more in-depth information and forecasts for spending, construction projects and market trends in the LNG and gas processing sectors, please see the “HPI Market Data 2021” report published by Hydrocarbon Processing in early October. GP


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FEATURED COLUMNS

Editorial Comment
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The IEA’s “Global Gas Security Review2020” report, released in October, projects that global gas demand will fall by 3%, or 120 Bm3, in 2020—the largest drop on record.
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-Eugene Gerden
The level of competition in the global LNG market is rising as major producers look to increase their shares in a market severely weakened by the COVID-19 pandemic.
Regional Focus: Mega-project in the FSU: Ongoing development of the Shah Deniz gas field
-Gordon Feller
Multiple billions of dollars have been invested to develop the Shah Deniz gas field.
Safety and Sustainability: A new standard of safety for onshore passive fire protection
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The onshore energy and petrochemicals sector is defined by the strength of its safety culture, but it has only recently begun moving toward adoption of the highest fire protection standards.


GasPro 2.0: A Webcast Symposium

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Following the successful GasPro Webcast Symposium in October 2019, the third GasPro Webcast Symposium will take place on October 21, 2020.

The 2019 webcast drew attendees from around the world, with more than 80% of the audience working in company management or engineering divisions.

The 2020 web event will gather experts in the fields of LNG, gas processing and process safety to share market, operations and engineering technology and trends with our audience.

Attendees of the 2020 webcast will learn about market solutions and technology deployments in a number of areas: LNG delivery infrastructure, small-scale desulfurization for NGL, H2S removal for gas treating, process safety for safety instrumented systems, small-scale LNG project design, and advances in freeze component removal for LNG.

October 21, 2020 08:30 AM CDT

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