In Race to Fill LNG Supply Gap, Project Goalposts Have Changed

In Race to Fill LNG Supply Gap, Project Goalposts Have Changed
An LNG tanker is seen off the coast of Singapore February 3, 2017. Gloystein/File Photo/Reuters
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LONDON—The race is on for liquefied natural gas (LNG) producers to build export terminals as demand soars, but the criteria for financing such mega-projects have shifted as traditional relationships with LNG consumers have begun to disintegrate.

Royal Dutch Shell’s final investment decision (FID) taken last month for a $30 billion LNG Canada project was a shot in the arm for the LNG industry, which is emerging from almost three years of low prices and investment.