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Why Energy Giants Will Continue to Dominate LNG Market

Trade in the $90 billion market for the superchilled gas is poised to double by 2040: Photographer: Tomohiro Ohsumi/Bloomberg

Total SA’s billion-dollar deal to buy liquefied natural gas assets from Engie SA shows how much size matters in the industry. 

After Royal Dutch Shell Plc’s takeover of BG Group Plc last year, industry consultant Wood Mackenzie Ltd. says the latest accord is evidence that the biggest energy companies with access to large volumes of diverse supplies will continue to dominate, even as commodity traders from Glencore Plc to Trafigura Group Pte are expanding. 

Trade in the $90 billion market for the superchilled gas is poised to double by 2040, underpinned by surging demand from Pakistan to China to generate power instead of burning dirtier coal. The biggest advantage integrated energy companies have is that they own the chain from gas fields to cooling terminals and giant ships crisscrossing the oceans. FULL ARTICLE

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