Global Gas Market May Be the One Place Where the Little Guy Wins
- Developers look to smaller LNG terminals for emerging markets
- Cheniere, Tellurian are considering lower-cost projects
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The failure of a $27 billion project last week may offer a lesson to natural gas exporters: Go small or go home.
With a global glut dragging down prices, liquefied natural gas suppliers including Cheniere Energy Inc. and Tellurian Inc. are looking to build smaller and cheaper. Such projects -- a third of the size and a fraction of the cost of most existing terminals -- offer a competitive edge for supplying emerging markets like the Middle East and Latin America, where customers are seeking intermittent deliveries of small amounts of the heating fuel.