LNG Project Sanctions Set Records in 2019

Maritime Activity Reports, Inc.

July 14, 2019

Graph: Rystad Energy

Graph: Rystad Energy

Rystad Energy expects LNG greenfield investment in 2019 to reach almost $103 billion, which will be the biggest investment year for the burgeoning industry to date.

A total of 33 million tpa of liquefaction capacity and $29 billion of Capex has been sanctioned so far this year, from Golden Pass LNG (US), Cheniere’s Sabine Pass T6 (US) and Anadarko’s Area 1 in Mozambique.

 
Over 70 million tpa of capacity and $70 billion of Capex is waiting to be sanctioned in the second half of 2019. Venture Global’s 11.2 million tpa Calcasieu Pass project in Louisiana, with Capex of $5.4 billion, has sold close to all of its capacity and has received all necessary approvals to receive a FID.

Sponsored by Total, Tellurian’s Driftwood (phase 1) and Novatek’s Arctic LNG 2 are also expected to take FID in 3Q 2019.

With ExxonMobil’s and Eni’s LNG greenfield experience in Africa, it is likely that the development of Mozambique Area 4 and Area 1 will be executed together.

The last project Rystad Energy favors for a 2019 approval is Qatargas’ T8 and T9, which has the lowest breakeven price in the market out of all proposed projects at $5.20 per MMBtu.

Maritime Reporter Magazine Cover Aug 2019 - The Shipyard Edition

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Subscribe
Maritime Reporter E-News subscription

Maritime Reporter E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News