Posted on 12/14/2015 1:55:02 PM PST by bananaman22
The glut in oil is expected to continue for the next year or so before balancing in late 2016, but the pain for liquefied natural gas (LNG) could be just beginning.
Building LNG export terminals is a long-term proposition. It can take years to develop a greenfield project, bringing a lump of new capacity online long after the project was initially planned, exposing developers to the possibility that market conditions could change in the interim. It is not unlike a conventional oil project, such as an offshore well, which also can take years (as opposed to a much shorter lead time for shale drilling).
But there is a major difference between oil and LNG: the market for LNG is much smaller and less liquid (no pun intended). In other words, a handful of new LNG export terminals can significantly alter the supply/demand balance.
(Excerpt) Read more at oilprice.com ...
Ahhhh, Never Mind!
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