Industry Trend Analysis - Development Financing To Spur LNG Imports - SEPT 2017

BMI View : Development banks will play a growing role in the financing of LNG import projects support ing wider uptake of the fuel in emerging markets globally .

We hold a strongly bullish view on the LNG import growth into emerging markets (EMs). We forecast a number of EMs to begin imports in the next five years, including Cote d'Ivoire, Ghana, Bangladesh, Myanmar, Philippines, Vietnam, Panama, Croatia and Bahrain. This adds to other markets not within the scope of our coverage, such as Uruguay.

LNG offers a number of benefits to EM buyers, including a diversification and greening of the power supply and, in some cases, a reduction of cost. Continued technological advancements - in particular through the growing role of floating storage and regasification units (FSRUs) - has also allowed LNG import infrastructure to be deployed with narrower lead times, lower capital outlay and shorter project life-cycles. This has opened inroads into new markets where the existing demand pool is small or non-existent and long-term demand trajectories are highly uncertain.

EM Buyers Mushrooming
Selected Countries LNG Net Exports*, bcm
* negative value denotes import. f = BMI forecast. Source: BMI, National sources

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