2019 to be a record year for LNG project sanctioning

July 12, 2019

Rystad Energy forecasts that LNG greenfield investment in 2019 will reach almost $103 billion – the biggest investment year for the burgeoning industry to date. A total of 33 million tpa of liquefaction capacity and $29 billion of Capex has been sanctioned so far this year, from Golden Pass LNG (US), Cheniere’s Sabine Pass T6 (US) and Anadarko’s Area 1 in Mozambique.

 
Over 70 million tpa of capacity and $70 billion of Capex is waiting to be sanctioned in the second half of 2019. Venture Global’s 11.2 million tpa Calcasieu Pass project in Louisiana, with Capex of $5.4 billion, has sold close to all of its capacity and has received all necessary approvals to receive a FID. Sponsored by Total, Tellurian’s Driftwood (phase 1) and Novatek’s Arctic LNG 2 are also expected to take FID in 3Q 2019. With ExxonMobil’s and Eni’s LNG greenfield experience in Africa, it is likely that the development of Mozambique Area 4 and Area 1 will be executed together.


The last project Rystad Energy favors for a 2019 approval is Qatargas’ T8 and T9, which has the lowest breakeven price in the market out of all proposed projects at $5.20 per MMBtu.

Total greenfield LNG investments by approval year

A more detailed analysis can be accessed via our Gas Market Solutions.

###

Contacts

Carlos Torres Diaz
Head of Gas Market Research
Phone: +47 24 00 42 00
carlos.torres@rystadenergy.com

Carsten Torbergsen
Marketing Manager
Phone: +47 24 00 42 00
carsten.torbergsen@rystadenergy.com


About Rystad Energy

Rystad Energy is an independent energy research and business intelligence company providing data, tools, analytics and consultancy services to the global energy industry. Our products and services cover energy fundamentals and the global and regional upstream, oilfield services and renewable energy industries, tailored to analysts, managers and executives alike. Rystad Energy’s headquarters are located in Oslo, Norway. Further presence has been established in London, New York, Houston, Stavanger, Moscow, Rio de Janeiro, Singapore, Bangalore, Tokyo, Sydney and Dubai.