The Golden Opportunity For LNG.

The Golden Opportunity For LNG.

Global gas and LN LN G markets have been significantly disrupted by the war in Ukraine. A glorious opportunity has been presented to suppliers with LNG available who can fill the void left by Russia's diminishing role and capitalise on high prices. But in the current febrile environment, how do the buyers serving the European market – utilities and traders – make the critical decisions to secure gas at competitive prices for the medium term? Wood Mackenzie's Massimo Di-Odoardo, Head of Gas Analysis, and Giles Farrer, Head of LNG Assets, shared their thoughts. First, the number of players able to produce LNG at scale is shrinking. Qatar is one. The North Field East expansion project, currently under development and sanctioned before the crisis, will cement its place as a global leader. TotalEnergies is to be Qatar Energy's first partner in the project; a handful of other leading IOCs will be invited to join in short order. North Field East is a giant. The largest single LNG project in the industry's 60-year history will deliver 32 mmtpa in four years' time and cost US$30 billion. All-in unit costs, though, will be among the lowest in the market, as will be the