Adapting traditional business models for an increasingly fragmented LNG industry

T. Shattuck and A. Slaughter, Deloitte Center for Energy Solutions, Deloitte Services LP, Houston, Texas Since the 1960s, when LNG was first exported commercially from Algeria, natural gas trade via waterborne cryogenic cargoes has seen consistently strong growth. While much has changed in the last 50 yr, until recently the dominant commercial structures had hardly changed. The traditional integrated model—where major producers develop large and often otherwise stranded gas fields, build large natural gas liquefaction facilities and sell cargoes on long-term contracts to major utilities—has been remarkably stable. However, over the last decade, global LNG trade has begun to incorporate a n