2018 World LNG Report

June 23, 2018

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.

 

Source : https://www.igu.org/news/2018-world-lng-report

Happy Eid Mubarak 2018

Keppel to build South East Asia’s first LNG bunkering vessel

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.

 

Source : http://www.kepcorp.com/en/news_item.aspx?sid=7819

WEO Analysis: Is natural gas in good shape for the future?

Are we entering a Golden Age of Gas?” – That was the question the International Energy Agency asked in 2011 when examining the combination of market dynamics and policies that might allow natural gas to thrive in the future.

The idea of a “Golden Age” was built on a few pillars. On the supply side, the main thesis was that the abundance of unconventional gas resources would help to bring down supply costs, making natural gas more attractive and accessible worldwide. On the demand side, the main elements were an ambitious policy promoting gas use in China, lower growth in nuclear power and more use of gas in road transport.

Seven years later, most of these pillars are still at least partly in place. Today’s price levels are very much in line with those in the “Golden Age” analysis; China has reserved a strategic role in its energy policy for gas; the outlook for nuclear has indeed faded somewhat; the only area where natural gas has not made much ground is road transport, where electric vehicles have taken the lead.

Yet the mood in the natural gas industry, at least outside the United States, has not always been so optimistic since then. Demand has slowed considerably for most of the period since 2011, from an average of 2.8% per year between 2000 and 2010, to 1.4% per year from 2011-2016; lower prices squeezed revenues; traditional business models have been questioned without anyone being sure what will take their place; and the competitive landscape has become significantly more complex, as the traditional sparring partners for gas – coal and, to a lesser extent, oil – have been joined by the rising forces of renewables and energy efficiency.

 

read more….

 

Source: International Energy Agency

 

 

WGC 2018

THE WORLD’S LARGEST GLOBAL GAS CONFERENCE


The World Gas Conference is the most important global gas industry gathering of influential leaders, policy-makers, buyers, sellers and experts. Conducted since 1931 by the International Gas Union (IGU), the triennial event aims to raise the voice of natural gas while offering timely updates on strategic, commercial and technical issues facing the entire gas value chain.

The 27th World Gas Conference (WGC 2018) takes place in Washington DC from June 25-29 and offers the most comprehensive and diverse program to date for the natural gas industry. For the first time ever this includes topics for professionals working in sectors including finance, trading, law, sustainability & renewables, policy & Government and many more. View the interactive online program.

WGC 2018 is proud to host over 600 of the industry’s most senior speakers from all over the world, including US Secretary of Energy Rick Perry, and CEOs from global companies including Chevron, ExxonMobil, Qatar Petroleum, Gazprom, BP, Total, ConocoPhillips and Shell to name a few.

 

more info : www.wgc2018.com

IndoGAS 2019 Conference & Exhibition

While IndoGAS conferences provide a deep dive into the local Indonesian gas industry, they also look at international trends and are now considered to be the premier natural gas and LNG industry gatherings in the region. IndoGAS 2019 will be a landmark event that deals with strategic, regulatory, technical and commercial aspects of the gas business for industry leaders, legislators, experts and committed professionals that are regulating, developing, operating and financing Asia/Pacific natural gas, LNG and energy infrastructure.

The demand for natural gas continues to rise in Indonesia and its neighbors, against a backdrop of all the countries in the region strivingto achieve security of energy supply. Amongst the challenges that the industry faces are how to improve the availability, deliverability and affordability of natural gas, upstream and downstream, and how to balance demand and supply through local production, exports and imports in order to achieve the best business outcomes for investors, the best prices for consumers and the best strategic outcomes for the host country. For Indonesia, this critically includes a focus away from Java and Sumatra to other parts of the archipelago that need energy to stimulate economic growth and provide social equity.

New Indonesian Government regulations have been implemented to ease barriers to energy investment, avert energy crises and provide impetus to the energy industry by, for example, encouraging the building of integrated energy infrastructure to connect producers with customers. There is a new focus on village industries, part of President Joko Widodo’s vision of building Indonesia from its outer regions and one of his Government’s nine “key agendas”. In addition to the development of gas industry, there is also a recognation that renewable energy must be developed in parallel as a measure for meeting national energy mix target by 2025..

 

Read more: www.indogas2019.i-eec.com