The International Gas Union has released the 2014 version of its World LNG Report. The second LNG report of the IGU 2011 – 2015 Triennium includes a special feature titled Small Scale LNG Value Chain.
Global gas demand
In his foreword to the report, IGU president, Jérôme Ferrier, states: “Global gas demand is surging, nurtured by a growing preference for low-carbon energies and uncertainty over possible Korean and Japanese nuclear policies. The world is keenly awaiting new LNG supplies from the US, although some uncertainty remains over the actual number of liquefaction projects that will start delivering soon.”
LNG trade in 2013 was reportedly 236.8 million t, slightly below the record 241.5 million in 2011. A number of supply issues, including the force majeure in Nigeria and diversions in Egypt, resulted in a tight market. As the demand for global gas increases, market tightness might continue at least to the end of this year, until major new sources of LNG supply come online in 2015.
The volume of LNG traded through short-term contracts reached a new high of 77.3 million t in 2013, amounting to one third of global trade. 74% of this spot LNG was delivered to markets in Asia.
IGU secretary-general, Torstein Indrebø, welcome three new LNG importing countries: “In 2013 Singapore, Malaysia and Israel joined the list of now 29 countries with LNG import capabilities, resulting in global regasification capacity now reaching 688 million tpa, a 6.8% increase compared with 2012.”
The report also points out that ten countries now have floating LNG (FLNG) capacity. The LNG fleet continues to grow, with 16 new vessels entering service in 2013 and a total of 31 scheduled for delivery during 2014.
Global LNG demand will continue to grow with both traditional consumers, and new markets and supply routes emerging. These dynamics will drive gas globalisation and influence prices.
Asia will attract more diversified suppliers, and is also expected to be the area of largest LNG supply growth. Strong demand from China and India, in addition to traditional importers Japan and Korea, could ensure that the Asia Pacific market remains profitable for LNG suppliers. The US is also set to become a significant LNG exporter.
The IGU World LNG Report can be accessed here.
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/small-scale-lng/03042014/lng_driving_gas_globalisation_379/