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T
he LNG industry is changing, and fast. As new
paradigms for developing and delivering business
strategy emerge, solutions are needed for
recommending one approach over another, creating
efficiency, clarity and confidence in decision making. This
article looks at predictive simulation as a strategy for
helping to manage market uncertainty, and recommends
the best way to go about implementing and using a
simulation of a future business.
Market evolution
The LNG industry is in a state of accelerated change
as it matures towards a commoditised market. The
combination of new production coming online and
volatility in prices has meant that regasification terminal
developers and LNG buyers across the globe are
proactively seeking more supply flexibility and at lower
prices. Until recently, producers with older point-to-point
sales and purchase agreements (SPAs) were, to an extent,
in control; a dominance which is on the decline. Producers
see long-term, large volume deals increasingly difficult to
sign and are now turning to portfolio players who make up
the majority of recent longer-term contracts.
Predicting tomorrow,
today
Steve Hemsley, Lanner,
UK,
offers a new
simulation approach
that can help limit
risks and support
major decisions
as global trade
patterns
change.
