Available Exclusively to NGW Subscribers:
Volume 2, Issue 3 - March 30, 2020
LNG Condensed brings you independent analysis of the LNG world's rapidly evolving markets.
Covering the length of the LNG value chain and the breadth of this global industry, it will inform, provoke and enrich your decision making. Published monthly, LNG Condensed provides original content on industry developments by the leading editorial team from Natural Gas World.
LNG Condensed is your magazine for the fuel of the future.
Sign up to NGW Basic FREE or to NGW Premium now to receive LNG Condensed monthly (you will find every issue of LNG Condensed in your subscriber dashboard)
In this Issue:
Editorial: Lock Down
Measures taken to contain the spread of the coronavirus (Covid-19) are hitting the world hard. Energy demand, particularly from transportation, is falling sharply, while the curtailment of industrial activity is widespread and sufficient to send the global economy into recession.
The collapse in the oil price spells even more trouble for the LNG industry. Already suffering from surplus capacity, energy demand has been hard hit by measures to retard the spread of the coronavirus (Covid-19). However, while oil and long-term LNG contract prices look likely to remain low, spot LNG in 2021 could be a major beneficiary of the inevitable rebound.
Covid-19 could boost Central Asian plans to access South Asian gas markets
Turkmenistan holds around a tenth of the world’s proven gas reserves. Its options for export are limited and the coronavirus (Covid-19) pandemic has underlined its problematic reliance on pipeline exports to China. As a result, the TAPI pipeline project looks increasingly attractive, despite major political and security risks. LNG suppliers to South Asia could fi nd that competition from Central Asian piped gas proves one of the long-term consequences of the Covid-19 pandemic.
Improving fortunes for Indonesian gas?
Indonesia’s plans to reverse the long decline in its LNG exports could be derailed or at least severely delayed by the collapse of oil and gas prices. The government has set ambitious new production targets for both oil and gas, but has also to meet rising domestic demand at a time when project economics have become very challenging.
Country Focus: Turkey: LNG intake rises
Despite an overall fall in gas consumption, Turkey’s LNG imports rose in both 2018 and 2019, pushing it into the top rank of European LNG importers. Keen both to diversify its import sources and reduce its dependence on Russian pipeline gas, the country was an enthusiastic buyer of US LNG last year. Yet the country has also boosted its use of coal. If more ambitious decarbonisation policies are adopted, gas-for-coal displacement will be an obvious pathway to reduce carbon emissions.
Project Spotlight: PFLNG DUA
Malaysia’s Petronas saw its second floating LNG vessel, PFLNG Dua, leave port under tow in February. The vessel will be moored through an external turret on the deepwater Rotan gas field, 140 km off shore Kota Kinabalu in block H, Sabah, Malaysia.
Technology: Liquefaction tech – a key decision
The market for liquefaction technology is dominated by two main players, but small-scale and floating LNG projects are driving innovation in the area, while newer companies, like Russia’s Novatek, are keen to develop their own processes. Liquefaction technology providers are focused not just on increasing efficiency, safety and reliability, but also increasingly on greenhouse gas emission reductions.