Liquefied Natural Gas Project Financing Structures

Summary

This practice note describes the principal project financing structures for liquefication facilities that produce liquefied natural gas (LNG). Growing global demand for energy coupled with low natural gas energy prices in the U.S. market have contributed to developing a global supply chain, giving U.S. oil and gas producers the ability to tap regional energy markets across the globe by exporting liquefied natural gas (LNG). A critical link in this global supply chain are the LNG liquefaction facilities, which are often developed using project finance structures.