Suppliers of liquefied natural gas (LNG) are under increasing pressure to lower the carbon footprints of their cargoes. But the question of who pays for the costs of decarbonization is a tricky one, Poten & Partners analysts said Wednesday.
With more LNG supply expected to come online by the middle of the decade, sellers are already finding it difficult to compete on prices, Poten managing editor Sophie Tan said during a webinar.
“Any increase in costs in terms of decarbonization solutions, they wouldn’t be able to put it into the LNG price at the moment until the demand is there, or the oversupply somehow gets resolved,” Tan said.
Still, she said buyers expect to see those costs reflected in the price of LNG in the future.
The sector has seen a fair amount of growth...