Free Energy Abstract: LNG: New Market Structures, New Opportunities

lng tanker dockedAvailable for FREE 17-20 April 2018! Valued at USD74.99!

Liquefied natural gas (LNG), a cleaner fossil fuel, is playing an increasingly important role in power generation and transportation in a world with growing concerns about carbon emissions.

The global LNG market has been in existence for approximately 60 years. Liquefying natural gas, by chilling it to -160 Celsius condenses it to 1/600th of its original volume and allows it to be transported by specialized vessels from areas with great supply and limited demand to areas with less domestic supply and significant demand.

In 2017, the global LNG trade amounted to approximately 290 million tons. This represents about a 10% increase over 2016 levels. The world’s total liquefaction capacity has been increasing and now stands at 331 million tons, after increasing by 155 million tons over the past 5 years, with Qatar and Australia featured as the two largest exporters. In order to consume this fuel, specialized vessels carrying the material must dock at import/regasification terminals. The world’s LNG regasification capacity is more than twice the current liquefaction capacity at 722.56 million tons per annum which results in an average annual utilization rate of just 45% for these assets.

The Increasing numbers and capacities of global LNG infrastructure, and volumes of trade, has created greater optionality for the sourcing and delivery of cargoes. Changing LNG contract terms and the entrance of new market participants have also enabled the development of a growing trading market for spot LNG cargoes. These structural and operational changes are creating new opportunities in the LNG space.

By the end of this course, you will:

  • Better understand how global LNG markets are transitioning from a long-term contract dominated business to a more dynamic one with greater numbers of market participants and transactions.
  • Be able to evaluate how new sources of U.S. supply and new pricing structures are affecting traditional pricing and international trade patterns.
  • Be better informed regarding LNG infrastructure upgrades and how the next wave of supply will affect the growing global LNG trade.
  • Understand the factors required -- greater price transparency and market liquidity -- to create consistent long-term growth of global LNG trade and increase the market penetration of the fuel.

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