Oil Crash Is Double-Edged Sword for LNG
That’s not exactly a new situation. Many projects like Mozambique have been around as paper tigers for more than a decade and they could not get going when prices were a lot higher and future prospects seemed much more promising. Two things are to blame. First, its a gold digger mentality when times are good (or seem to be). Many projects are set up as get rich quick or die trying schemes and there have been some of those in the past so the world behaves like a burned child and gets weary. Reasonableness is not a valued commodity it seems. And second, all those projects always assumed that the market would just pop into existence if they waved with LNG. That was not true in the past, and it’s not true now. Markets still need to be developed. LNG as a fuel is the biggest price out there but sitting and waiting won’t make it happen – not for them.
