LNG may topple East Med pipeline

Most people and even most energy professionals believe that pipeline is always the cheaper option when it comes to transporting gas. Gas professionals know that each option has its cost factors and its advantages in terms of commercial opportunities. The pipeline gives you a more captive customer, LNG gives you the world market. But pipeline transport costs you per mile you transport and the longer the distance is, the higher the cost. It’s almost linear. On the other hand, LNG has relatively high initial costs, but once the LNG hits, the vessel distance becomes much less meaningful. This calculation becomes much more interesting when the pipeline needs to stretch long parts of the open, deep ocean. 

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