With the price differential between oil and LNG sending mixed signals to the market, is the time right to look at Small Scale LNG (SSLNG)? Below we outline six key reasons why the outlook is positive. ( 1) The LNG market is currently in surplus , with global demand in 2015 only increasing by 700 MMcf/d while supply increased by 2.2Bcf/d. Volume upside from existing markets is limited, which opens the opportunity for new demand markets further downstream to soak up the growth in LNG supply. As a result of this oversupply, global LNG prices are low. Estimated landed LNG prices as of May 2016 were $1.78/MMBTU in the United States, $4.34/MMBTU in Europe, and $4.55/MMBTU in Asia (Figure 1). Is it possible for LNG to get any cheaper? The buyer’s market will last only as long as the oversupply dynamic lasts. Tides turn, and U.S. Henry Hub spot […]