Decline in oil prices and increasing supply surplus have set back investments in the LNG industry during 2016. However, with new drivers emerging both globally and regionally, the investments are likely to recover in 2017 and 2018. Further, with Supply- Demand conditions to rebalance by 2018, players across the industry plan to make new contracts and capacity expansions. Majority of planned and under construction terminals continue to witness steady progress offering steady opportunities for LNG equipment and service providers.
Global Liquefaction capacity is expected to witness an AAGR growth rate of 6.2% by 2022 while widening scope of regasification projects will drive 4.1% growth in regasification capacity based on planned and under construction LNG projects. Asia Pacific continues to be the leading investment destination both for liquefaction and regasification project developments. However, African LNG terminals continue to face challenges in arriving at FIDs.