The increased transition to natural gas in heating and electricity generation around the world will continue to drive liquefied natural gas (LNG) demand growth for years to come, analysts say.

The first wave of LNG projects, whose construction started a decade ago, are now operational, but major oil and gas companies already plan and sanction new projects for the next few years, creating the second LNG supply boom.

Experts expect this year to become a record year for final investment decisions (FID) on new LNG projects, the biggest year yet in terms of LNG volumes of projects given the go-ahead, and the biggest year for LNG greenfield investment, according to oilmarket.com.

The next LNG project boom is set to benefit engineering, procurement and construction (EPC) contractors as it is likely to lead to total capital expenditure—including LNG plant and upstream infrastructure—exceeding US$200 billion between 2019 and 2025, Wood Mackenzie said in April this year, noting that the “LNG boom is back.”

This year began with Exxon and Qatar Petroleum reaching a FID in February to proceed with development of the Golden Pass LNG export project in Sabine Pass, Texas, with investment of over US$10 billion.