Another element of that article didn't quite seem right. That is the suggestion the US could grow into the world's third largest exporter by 2020.
That's a lot of capacity growth in a very short time in an industry where $10 billion plus plants take 3-4 years to build. That's also a lot of capacity within a market that some say is already flooded with LNG capacity and weak demand growth. But then we see the IEA projecting market growth of 40% from 2013 to 2019. Without long term contracts you have to ask who will be putting up the money to build these plants.
If anything the LNG market appears awash in opinion and speculation parading as information. Whatever the truth might, be absent an unforeseen catastrophe it appears IOC is well positioned to be making real money before 2020.
That's a lot of capacity growth in a very short time in an industry where $10 billion plus plants take 3-4 years to build. That's also a lot of capacity within a market that some say is already flooded with LNG capacity and weak demand growth. But then we see the IEA projecting market growth of 40% from 2013 to 2019. Without long term contracts you have to ask who will be putting up the money to build these plants.
If anything the LNG market appears awash in opinion and speculation parading as information. Whatever the truth might, be absent an unforeseen catastrophe it appears IOC is well positioned to be making real money before 2020.