Big U.S. liquefied natgas players move fast, the small race to keep up - Reuters

Big U.S. liquefied natgas players move fast, the small race to keep up - Reuters:

A gap is emerging in the U.S. liquefied natural gas (LNG) industry as big players such as Exxon Mobil Corp (XOM.N) and Cheniere Energy Inc (LNG.A) race ahead to build export terminals without new long-term contracts, while smaller developers struggle to find financing for their first plants.

LNG trade has traditionally been underpinned by long-term purchasing deals which finance multi-billion dollar terminals that liquefy natural gas by chilling it to -260 degrees Fahrenheit (-160 Celsius), load it onto ships, and regasify it when delivered.

This is changing. As the market grows and pricing mechanisms diversify, some buyers do not want to commit to 20-year contracts. The growing prowess of oil majors such as Exxon and recent entrants such as Cheniere and trading houses means there are aggregators that can supply buyers more flexibly, making it harder for smaller players.