The changing relationship between NOCs and IOCs in the LNG chain
Both the LNG business and IOC/NOC relationships have changed significantly over the past two decades and change is likely to continue. David Ledesma concludes that it is unlikely that the dominance which IOCs enjoyed in the LNG during the 1980s and 1990s will return. New players are offering NOCs access to parts of the chain that IOCs have been unwilling to provide. IOCs must continue to evolve in response to these approaches as NOCs seek new partners such as utilities who are keen to gain direct access to LNG supplies to meet their supply and commercial requirements and LNG shipping and service companies seeking to diversify into different parts of the value chain. The pace of divergence in IOC/NOC relationships can be slowed down but IOCs will have to clearly focus their strategy and activities and be more flexible to NOC requirements if they want to maintain their position in the industry."
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