p1-4_LNG 3 15/01/2018 09:52 Page 1 36 pages essential LNG news! January 2018 In this issue: LNG exports from US and Russia 1 LNG exports from US and Russia to help to help create new gas world order create new gas world Latest report from International Energy Agency outlines wider role for flexible and abundant gas in energy transition order Latest report from International A new natural gas world order is Energy Agency outlines wider role emerging as US liquefied natural gas for flexible and abundant gas in energy transition production helps to accelerate a shift towards a more flexible, liquid and global 3 Australia’s Wheatstone market, accompanied by new Russian project joined by Yamal shipments of LNG to Asia and by future and Cove Point plants pipeline volumes. for early 2018 ramp-up The France-based International Three latest liquefaction plants Energy Agency said in its World Energy were developed to cope with widely Outlook that LNG would account for differing climatic conditions almost 90 percent of the projected growth 5 A round-up of latest in long-distance natural gas trade from events, company and now until 2040. industry news Qualities For the Record “Ensuring that gas remains affordable 20 Chart Industries and secure, beyond the current period outlines brazed of ample supply and lower prices, is aluminum heat critical for its long-term prospects,” the The new Yamal LNG export plant in the Russian Arctic region exchanger benefits for IEA stated. LNG plant optimisation However, the IEA added that with anticipated changes in the wider gas one-third, due to more reliance on highly Doug Ducote and Paul Shields of few exceptions - most notably the route market,” it added. efficient plants,” it added. Chart Industries that opens up between Russia and China As such, natural gas can play an - major new pipelines will struggle in Dividends extremely positive role in improving 22 Japan commissions a world that “prizes the optionality” “The new gas order can bring dividends urban air quality and reducing air newest LNG import of LNG. for gas security, although there is the risk pollution. terminal amid plans for “The transformation in gas markets is of a hard landing for gas markets in the using depleted gas advanced by market liberalisation in 2020s if uncertainty over the pace or Supplies fields for storage Japan and other Asian economies and by direction of change deters new According to the IEA Outlook, the US will Japan Petroleum Exploration Co. the rise of portfolio players - large investments,” the report stated. produce plentiful supplies of natural gas increases presence in LNG imports, purchases, natural gas storage and companies with a range of supply assets,” The IEA added that in resource-rich maintain a strong share of gas-fired pipelines it said. regions, such as the Middle East, the case power in electricity generation through to “New buyers, often smaller scale, are for expanding gas use is relatively 2040, even without national policies 24 How major consumer appearing. The number of LNG- straightforward, especially when it can limiting the use of coal. Japan sees current importing countries has risen from 15 in substitute for oil. “But 80 percent of the projected growth LNG polices of major 2005 to 40 today,” explained the report. The report said the competitive in gas demand takes place in developing participants it has “Gas supply also becomes more landscape remained “formidable”, not just economies, led by China, India and other talked to diverse as the amount of liquefaction due to coal but also because of countries in Asia, where much of the Some prominent exports and sites worldwide doubles to 2040, with the renewables, which in some countries gas needs to be imported (and so importers explain their varied ~ objectives main additions coming from the US and become a cheaper form of new power transportation costs are significant) and Australia, followed by Russia, Qatar, generation than gas by the mid-2020s, infrastructure is often not yet in place. 26 World Carrier Fleet: Mozambique and Canada,” the IEA said. pushing gas-fired plants towards a “This reflects the fact that gas looks a Details of LNG vessels “Price formation is based increasingly balancing rather than a baseload role,” good fit for policy priorities in this region, on competition between various sources said IEA. generating heat, power and mobility with of gas, rather than indexation to oil. “Efficiency policies also play a part in fewer carbon-dioxide (CO2) and pollutant 31 Tables of import and “With destination flexibility, hub- constraining gas use: while the electricity emissions than other fossil fuels, helping export LNG terminals based pricing and spot availability, US generated from gas grows by more than to address widespread concerns over air and plants worldwide LNG acts as a catalyst for many of the half to 2040, related gas use rises by only quality,” it said. p1-4_LNG 3 15/01/2018 09:52 Page 2 DEVELOPMENTS The IEA explained that in 2040, it industry still had homework to do. journal would take around 10 days for major “As oil and coal fall back importing regions to raise their import and renewables ramp up levels by 10 percent, a week less than it strongly, natural gas might take today in Europe, Japan and becomes the largest South Korea. single fuel in the Already a net The shale revolution in the US is global mix in the LNG The World’s Leading publication quickly turning to exports, showing a Sustainable exporter of gas, remarkable ability to unlock new Development Maritime Content Ltd resources cost effectively. Shale has Scenario,” said the US becomes 1st Floor, 30 Warner Street pushed combined US oil and gas output the IEA. London EC1R 5EX to a level 50 percent higher than any “Securing clear a net exporter of oil United Kingdom other country has ever managed. climate benefits www.LNGjournal.com +44 (0)20 7253 2700 “Already a net exporter of gas, the US from gas use in the late 2020s. becomes a net exporter of oil in the late depends on credible Publisher 2020s. In our projections, the 8 million action to minimize Stuart Fryer barrels per day rise in US tight oil output leaks of methane - a gas Editor from 2010 to 2025 would match the potent greenhouse gas - to the “will be John McKay highest sustained period of oil output atmosphere. determined by [email protected] growth by a single country in the history “Consumption of natural gas rises by how it is assessed by of oil markets,” the IEA stated. nearly 20 percent to 2030 in the policy-makers and prospective consumers Advertising Sustainable Development Scenario and against three criteria: is it affordable, is it David Jeffries Only Media Ltd US position remains broadly at this level to 2040,” secure, and is it clean?” The IGU argues Tel: +44 (0) 208 150 5293 The report forecasts that by the mid- it said. strongly that the response to all three [email protected] 2020s, the US becomes the world’s largest “The contribution of gas varies widely questions is an emphatic “yes”. Subscriptions Sales Manager LNG exporter and a few years later a net across regions, between sectors and over Elena Fuertes exporter of oil - still a major importer of time in this scenario,” said the IEA in its Growth Tel: + 44 (0) 7017 3416 heavier crudes that suit the configuration alternative forecasting Global gas consumption is set to grow at [email protected] of its refineries, but a larger exporter of The IEA also examined the role of an average rate of 1.6 percent per year to light crude and refined products. methane emissions in the natural gas 2040 - a higher growth projection than oil Production The IEA also noted that “when China value chain - as the natural gas industry or coal - and is expected to account for a Vivian Chee Tel: +44 (0) 20 8995 5540 changes, everything changes” and that continues to further its efforts to mitigate quarter of global energy demand by the [email protected] the Asian nation was entering a new methane emissions. same date. phase in its development, with the “These growth projections highlight emphasis in energy policy now firmly on Action the critical importance of gas in the Subscription electricity, natural gas and cleaner, high- It said that stepping up action to tackle global energy mix - both as a sustainable efficiency and digital technologies. methane leaks along the oil and gas and affordable option, and as an option £655/€810/US$1050 Print & online Chinese President’s Xi Jinping has value chain is “essential to bolster the that complements the rising use of Online only £595/€795/US$950 called for an “energy revolution” in the environmental case” for gas. renewable energies,” the report said. “fight against pollution” and the “These emissions are not the only The IGU commended the IEA for See website for more details www.lngjournal.com transition towards a more services-based anthropogenic emissions of methane, but recognising the enormous versatility [email protected] economic model is moving the energy they are likely to be among the cheapest benefit of gas and strongly agrees with hotline +44 (0)20 7017 3416 sector in a new direction. to abate.,” said the IEA. the IEA’s comments that “it can play “China’s choices will play a huge role “We present the first global analysis of multiple roles across the energy system in determining global trends, and could the costs of abating the estimated 76 in a way that no other fuel or technology spark a faster clean energy transition,” million tonnes of methane emitted can match” in terms of generating power, said the IEA.