Floating LNG Terminals Pose Higher Costs, Weather Risks to Asian Countries

IEEFA’s research said that 90 percent of the floating import projects in South and Southeast Asia are proposed in countries prone to oceanic disturbances.

A vessel carrying liquefied natural gas (LNG) cargo from Russia's Yamal LNG project at Rudong LNG Terminal in Nantong, Jiangsu Province, China, on July 18, 2018. Stringer/Reuters

Despite being promoted as a quicker and cheaper solution to the energy transition, floating liquefied natural gas (LNG) terminals pose higher costs and climate risks particularly to Asian markets, a recent think tank study shows.

“Stronger and more harmful weather events increasingly threaten the reliability of offshore LNG projects and the energy security of importing countries,” said Sam Reynolds, report co-author and LNG/gas research lead for Institute for Energy Economics and Financial Analysis (IEEFA) Asia.