Demand for liquefied natural gas (LNG) is forecasted to grow at a rate of 4.5% per year. When combined with declining availability of LNG from traditional suppliers such as Indonesia, Malaysia, Algeria and Australia's Northwest Shelf, it will be necessary to approve another 28 million-30 million tons per year of production to meet demand by 2020. This means the next wave of LNG construction will likely require 10-11 trains.


So which trains will move forward next? For the North American market, developers with full regulatory approvals in place will be in the best position to move forward. Cheniere Energy Incorporated (NYSE:LNG) (Houston, Texas), Royal Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands), and Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas) are considered frontrunners at this point to achieve a financial investment decision in 2018, with construction starting in 2019.


Outside of the U.S. market, Anadarko Petroleum Corporation's (NYSE:APC) (The Woodlands, Texas) Mozambique Area 1 and OAO Gazprom's Sakhalin 2, Train 3 in Russia are expected to move forward in the next year, followed by Qatar's North Field expansion, with approval expected in 2019.


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