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Wednesday, 29 November 2006 17:11

LNG agreements designed to attract finance

Steven R. Miles, Washington D.C., and Jason K. Bennett, Dallas, Texas


The terms for the sale and purchase of LNG are evolving towards more complex and flexible relationships between suppliers and purchasers which will allow an increasingly global market in the future.
The ever more intricate and dynamic commercial relationships between LNG suppliers and purchasers are typically set forth in Sale and Purchase Agreements, which serve as the foundation for most LNG trades worldwide.

Published in Oct 2006
This is the first part in a two-part series covering credit rating analysis of LNG projects worldwide

LNG shipping projects associated with supply chains in countries such as Russia, Nigeria and Indonesia will find investment-grade ratings elusive

Terry A Pratt, New York , Jan Willem Plantagie, Frankfurt, Karim Nassif, London, Michael K Vernier New York


Financing for liquid natural gas shipping projects has the potential to reach investment-grade credit ratings.

The strong global demand for LNG attracts huge investment for construction and operation of LNG liquefaction plants, LNG ships and LNG regasification terminals.
Published in April 2006
The number of prospective projects is going to stop growing and the commercial window of opportunity for 2010-2012 will begin to close

Competition brings together large firms with equity LNG supply, large firms without equity stakes in liquefaction and independent developers


The number of prospective LNG terminal projects in North America has exceeded by a great margin the actual needs of the market.

It has become more than clear that of the sixty-odd approved, proposed and potential terminal projects tracked by the FERC, only some will see their way through to construction and eventual commissioning.
Published in June 2006