LNG producers offer a single-chain solution for energy demand
Barcelona/Johannesburg — Seeking new ways to market their product, producers of liquefied natural gas (LNG) are turning to an age-old technique: packaging. As demand for electricity booms in developing nations from SA to Chile, LNG producers are offering to supply both fuel and a power plant in partnership agreements that can lock in consumption of their product for years. For their customers, primarily governments, it means dealing with a single entity responsible for every link in the chain. As many as five planned global projects may be developed as integrated LNG-to-power, according to the Houston-based law firm Baker Botts. LNG producers Cheniere Energy and Total have package deals either in the works or discussed, while power-plant constructor Siemens, and vessel providers such Hoegh Holdings, offer their input as partners. "This will be the major growth driver for LNG demand going forward," Anatol Feygin, chief commercial officer at Cheniere, which is involved in an LNG-to-po...
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