The LNG construction industry has likely reached its peak in 2015, especially in the U.S. and Australia. With few new LNG projects on the horizon, the sector is likely facing its steepest decline in decades.
Wood Mackenzie predicts the decline will start with countries outside of North America beginning in 2015 and extending to North America beginning in 2019 through 2021.
The drop in demand for LNG construction is attributed to oversupply in the gas market.
The declines will likely bring in more competition and pressure contractors to accept reduced margins and more onerous terms.
