PÖYRY POINT OF VIEW REPORT / 4 Jul 2016
Still a strong case for small scale LNG
The latest Pöyry Point of View details where the opportunities and challenges lie in the small scale Liquified Natural Gas (ssLNG) market, concluding that despite the increased uncertainty, ssLNG presents interesting opportunities for diverse energy players.
Three years ago Pöyry released its first report on ssLNG. Since then the obstacles facing the industry have shifted. Past issues of financing up-front investment have diminished as larger companies entered the market; however, the industry is now faced with lower demand as seller’s fears of commodity price falls force them to be more passive.
Added to this, there is the difficult task of arranging coordinated investments and risk allocation throughout the value chain in a space where producers and consumers have diametrically opposed expectations.
Whilst these challenges are very real, Pöyry maintains that ssLNG presents an attractive business case for diverse energy players with the right business model. Pöyry bases this assessment on three factors, which are described in the report, available at the link below (PDF format).