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What Will COVID-19 Mean for LNG?

https://www.bcg.com
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  • >LNG Producers.
    The immediate priority for producers in light of COVID-19 is to secure operational continuity.
    Beyond that, they should take quick steps to prepare for a longer and deeper supply glut.

    First, they should assess specific market risk exposures in the near term, particularly to buyers or regions that are likely to be more directly affected by the COVID-19 outbreak.
    They will also need to understand their relative competitiveness versus other producers in the new market environment.
    Taking advantage of fast-track margin improvement opportunities will be essential for responding to the immediate pressures on profit margins, starting with renegotiating supplier and service contracts.
    Measures that optimize LNG production and trading, particularly the use of new digital tools and capabilities, are also likely to prove among the most viable options for improving performance in the short term.


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