Prof Joo-Myung (Joe) Kang of the Republic of Korea was officially named President of the IGU at the 27th World Gas Conference in Washington, D.C., taking over from David Carroll of the United States.
“The Republic of Korea assumes the Presidency of an organization and an industry that is as strong as it has ever been,” said Joo-Myung, the new IGU President. “Under our leadership, the industry will build on the great work that has already been done under the USA and prior presidencies and intensify our collective efforts in advancing the role of natural gas in a sustainable energy future.”
The next instalment of the WGC will take place in Korea in 2021, where the theme will be ‘‘A Sustainable Future – Powered by Gas’’.
Thanks again to all who attended the 27th World Gas Conference last month – what a week! We hope you enjoyed the presentations, debates, networking and entertainment as much as we did. We were delighted to welcome over delegates from over 100 countries.
Holding the event in Washington DC helped attract huge interest and support from a record number of US and international policy makers in terms of speaker engagement, delegate attendance and media coverage. The conference program featured 600 speakers including policy makers and gas industry leaders, as well as experts from other sectors like finance, technology and sustainability. Numerous side events took place in the city throughout the event week, earning it the title of ‘Natural Gas Week’ within the industry.
Watch the event highlights video below for a reminder of all the action!
The 2018 World LNG Report released at the World Gas Conference in Washington D.C., examins the current state of the Global LNG Industry. The latest report shows 2017 as another record-breaking year for LNG trade and reinforces the global LNG industry’s role in expanding access to natural gas, an energy resource that leads to a more sustainable and prosperous future.
After steady growth in recent years, global LNG trade in 2017 reached 293.1 million tonnes (MT) – an increase of 12% (35.2 MT) from 2016, the third consecutive record-breaking year for the industry and the highest annual growth since 2010. 88.3 MT of this trade was non long-term, a 16 MT increase on 2016, and comprising a significant 30% of total LNG trade.
This significant growth can largely be attributed to increases in new LNG supply, driven primarily by projects in Australia and the United States bringing new capacity on line. With additional trains at Australia Pacific LNG, Gorgon LNG, and higher production from existing trains, Australia added 11.9 MT of production in 2017. United States production gains of 10.2 MT were driven entirely by Sabine Pass LNG, which added two new trains in 2017. Qatar remains the world’s leading exporter of LNG, with 2017 liquefaction reaching 81 MT. In 2017, unlike 2016, increases in world trade occurred without new major entrants to the global LNG market.
Increasing demand in 2017 also contributed to strong growth in global LNG trade, as LNG establishes itself as the fuel of choice in markets across the world. The Asia-Pacific region continued to be a core driver in global demand, with China alone adding 12.7 MT of imports in 2017 – the largest ever annual growth by a single country. This growth can be attributed to the strong enforcement of coal-to-gas switching policies through China, as policymakers aim to improve urban air quality across the country. Other countries driving global LNG growth include South Korea, Pakistan and Turkey, which together added a combined total of 11.9 MT in imports.
As of March 2018, global nominal liquefaction capacity reached 369 MTPA, with 32.2 MTPA of liquefaction capacity added between January 2017 and March 2018. As part of this, the first floating liquefaction (FLNG) project came online in Malaysia, with additional FLNG projects set to come online in 2018 and beyond. This growth is expected to continue, with 92 MTPA of liquefaction capacity under construction as of March 2018, and a further 875.5 MTPA of proposed capacity in the pipeline.
Global regasification capacity continued to increase, rising to 851 MTPA by March 2018, outpacing increases in liquefaction capacity. A total of 45 MTPA of regasification capacity was added during 2017, most of it in January, as terminals that had been completed during 2016 began commercial operations at the start of the year. The key additions made during the second half of 2017 were all in Asia, including Pakistan, Thailand, and Malaysia.
David Carroll, President of the IGU, said: “This year’s report is a testament to the importance of LNG as a core element in meeting the world’s energy needs, with international trade continuing to boom from both a supply and a demand perspective. We remain bullish and continue our strong support of LNG as a core driver of a sustainable future.”
The World LNG Report, a flagship publication of IGU first published in 2010, provides key insights into LNG industry developments through the end of calendar year 2017. While the Report’s focus remains, as in years past, upon recent historical data on world LNG activity, the Report also provides key insights on issues addressing world LNG activity going forward. Now published on an annual basis, the Report serves many in the international energy business as a standard desk reference for information on the LNG industry.
Keppel Offshore & Marine Ltd (Keppel O&M) through its wholly-owned subsidiary, Keppel Singmarine Pte Ltd, has secured a contract from FueLNG, a joint venture between Keppel O&M and Shell Eastern Petroleum (Pte) Ltd, to build South East Asia’s first Liquefied Natural Gas (LNG) bunkering vessel valued at approximately S$50 million.
Scheduled for completion in 3Q 2020, the dual-fuel LNG bunkering vessel will have a capacity of 7,500 cubic metres. FueLNG will receive a grant of up to S$3 million as part of the Maritime and Port Authority of Singapore’s (MPA) LNG Bunkering Pilot Programme (LBPP).
Mr Andrew Tan, CEO of MPA, said, “We are pleased that FueLNG, Keppel and Shell are taking the lead in growing the LNG bunkering infrastructure in Singapore. As the world’s largest bunkering port, it is important that we support the development of LNG bunkering in our port to cater to future demand for LNG as a marine fuel.”
The vessel will be built to the MTD 7500U LNG design, a proprietary design of Keppel O&M’s ship design and development arm, Marine Technology Development (MTD), for greener and safer bunkering activities within the Singapore port. The vessel’s key features include high manoeuvrability which enables bunkering without tug assistance, as well as propulsion and power management systems that optimise fuel consumption.
Mr Abu Bakar, Managing Director (Gas & Specialised Vessels), Keppel O&M, said, “We are delighted to build FueLNG’s first LNG bunkering vessel, which comes on the back of other recently secured contracts for newbuild solutions along the gas value chain. Keppel O&M is able to harness its expertise in newbuilds and LNG to provide customised solutions for clients, and is in a strong position to capture opportunities as the industry adopts greener solutions.”
Mr Lauran Wetemans, Director, FueLNG, and General Manager, Shell Downstream LNG, added, “Shell’s global expertise in LNG bunkering will support this growth in Singapore. This vessel enables FueLNG to provide ship-to-ship bunkering services to customers for cost-effective, cleaner fuel alternatives. The customised design enables FueLNG to operate efficiently and safely within the port of Singapore and we look forward to continuing to work with industry stakeholders to enhance and provide LNG bunkering infrastructure in Singapore.”
Capable of running on both LNG and marine diesel oil, the LNG bunkering vessel is more efficient than conventional bunker vessels. It is able to harness boil-off gas, a by-product of bunkering operations as well as the continuously evaporating LNG in the cryogenic tank, which would otherwise be flared off. It is also designed with a barge-like extended flat surface to maximise vessel compatibility which will enable FueLNG to deliver LNG bunkers to a wide range of vessels.
A twin screw azimuthing propulsion system also allows crabbing manoeuvre during bunkering operations, minimising tug utilisation and in turn reduces fuel consumption and emissions.
As emissions standards tighten globally, the industry is seeing increasing demand for LNG-fuelled ships, with 123 LNG-fuelled ships in operation and 150 on order as of early 20181. To meet this increasing demand, oil majors like Shell are expanding their LNG bunkering capabilities to increase the availability of LNG across the world. Having this capability in Singapore will complement the already established LNG bunkering infrastructure in key ports across the world.
The abovementioned contract is not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year.