Liquefaction Terminals to Dominate LNG Capital Expenditure
Capital expenditure (Capex) on global LNG facilities is expected to total $259 billion (bn) over the period 2015-2019, with investments expected to be 88% larger than the previous five years following a slowdown in 2009 through to 2012 as a result of the global recession.
Liquefaction terminals will form two-thirds of total Capex, a 90% growth compared to the last five years. Import terminal expenditure is forecast to make up a quarter of total global expenditure, a 112% increase, with LNG carrier expenditure accounting for 9%.
Global LNG Capex has been dominated by Australasia and Asia in recent years, however, over the forecast period all regions are expected to experience positive growth, except for Australasia and the Middle East. With its ambitious plans to export LNG, we can expect North America to become a significant market player in the forecast period.
In the next five years we can also expect increasing participation of Chinese shipyards in the LNG shipbuilding sector. General confidence in the market and a robust line-up of LNG terminals point towards a healthy LNG carrier shipbuilding industry. The observed increase in average price of carriers and increase in carrier capacities are expected to continue in the forecast period.