The article provides the outlook for the liquefied natural gas (LNG) market, which is currently undergoing a transformation.
Prices are becoming more transparent, and the number of market players has expanded: new suppliers and consumers are entering the LNG market, and standing customers demonstrate high demand potential. However, against the backdrop of positive dynamics, LNG suppliers need to understand that in order to maintain their position they will have to keep costs low and monitor the competitive threat presented from the renewable energy market. They also need to remember that in order to win new markets from oil producers, especially in transportation, they will have to improve logistics and overcome the conservative attitude of customer. In addition, there are various economic, political, and environmental uncertainty factors, which may hinder the LNG market development and expansion. In order to succeed in such circumstances, suppliers need to thoroughly analyse their business models and to assiduously assemble their customers, traders, and suppliers.
© 2020 KPMG. KPMG refers JSC “KPMG”, “KPMG Tax and Advisory” LLC, companies incorporated under the Laws of the Russian Federation, and KPMG Limited, a company incorporated under The Companies (Guernsey) Law, as amended in 2008.