Skip to main content

IGU report highlights LNG as key global factor

LNG Industry,


The latest report from the International Gas Union (IGU) focuses on small scale LNG, LNG as fuel, remote LNG and LNG lifecycle analysis.

In his foreword to the report, Jérôme Ferrier, President, noted: “A number of events have impacted the energy industry. The economic crises slowing down demand, coal replacing gas in the energy mix in Europe, the geopolitical crises triggering worries over security of gas supplies, tumbling oil prices affecting also the gas industry.”

Increased supply

LNG trade in 2014 was 241.1 million t, the second highest level ever. The increased supply was underpinned by the start of LNG production from Papua New Guinea (PNG), as well as improved output from the Pacific and Atlantic Basins.

Japan remained the biggest source of demand, while Qatar continued its position as the largest supplier of LNG.

LNG prices

LNG prices in Northeast Asia and Japan remained high during 2014, averting US$15.6/million Btu. End of year prices came under pressure, resulting in a levelling of European and Northeast Asian spot prices.

The volume of non long-term traded LNG totalled 64.7 million t, accounting for almost one third of global trade in 2014. 75% of spot LNG was delivered to Asian market.

Liquefaction capacity

The global liquefaction capacity increased by over 10 million tpy, thanks to new supply from PNG, Algeria and Australia, totalling 301 million tpy globally. Almost 130 million tpy is currently under construction, which is expected to come online in the next 10 years.

Pål Rasmussen, Secretary General of the IGU, welcomed the increase in LNG import terminal capacity, adding: “In 2014, Lithuania become the 30th country in LNG imports, while existing importers like Japan, South Korea and China completed large scale import facilities, and new terminals were also brought online in Brazil and Indonesia. Chile, Kuwait, Singapore and Brazil finalised new expansions.”

FLNG market

The floating LNG (FLNG) regasification capacity has nearly doubled since 2010, reaching 54 million tpy in 2014. There are 16 active terminals in 11 countries worldwide. Five additional projects with a combined capacity of 16.2 million tpy are under construction.

The LNG shipping fleet at the end of 2014 comprised 373 carriers with a combined capacity of 55 million m3. A total of 28 vessels were delivered in 2014.

Small scale focus

While global LNG demand is expected to continue, the focus for the next few years will be small scale LNG and LNG as a fuel. Small scale capacity totalled 20 million tpy in 2014, and this is set to increase. Many projects are being developed to create new markets for smaller volumes of LNG, either as energy for remote communities or as fuel alternatives for heavy trucking and shipping in sulfur emissions control areas (SECAs).


Edited from IGU press release by Katie Woodward

Read the article online at: https://www.lngindustry.com/small-scale-lng/04062015/igu-report-released-at-world-gas-conference-890/


 

Embed article link: (copy the HTML code below):