Energy, utilities and resources /

Liquefied Natural Gas (LNG)

The global LNG industry continues to demonstrate significant growth – natural gas is increasingly a fuel of choice as markets switch away from coal and as the economics of importing natural gas improve.

The ever-greater globalisation of natural gas markets is underpinned by LNG market growth, and the trade itself is increasingly liquid and commoditised. As new markets open, more LNG is traded on a short-term basis, and the barriers to entry lower. Opportunity abounds for new entrants and experienced players alike.

In this rapidly evolving market, growth is generating opportunity, but increased competition, decreasing margins and market change also present challenges. Whilst developing and funding major capital projects remains key, buyer preferences evolve away from long-term purchase agreements and towards greater flexibility. Consequently, more and more organisations need to have the capabilities and tools to manage and optimise this flexibility and are seeking to build out such capacity as the market evolves around them.

As margins decline in the face of a maturing market, it will be the fittest players – those best set up to optimise their portfolios and adapt to market change – that will be most successful.

Baringa works with clients across the full value chain of LNG to help them address these opportunities and challenges, through support in a number of areas including strategy, business model design, operational improvement, and Information Systems design, implementation and integration.