Gastech Insights is an online platform which delivers unique content, analysis and online discussions on the most important issues, from the perspective of those within the global gas and LNG community. It also gives gas professionals a voice and encourages them to become active contributors by sharing their knowledge, ideas and opinions on a vast range of industry topics.
The CEE region is undergoing a profound change in terms of its interconnected energy market dynamics due to the constant evolution of liberalised energy markets and the need for supply security and diversity. LNG Allies’ vision is to maximise US LNG exports to enhance the energy security of America’s allies as well as improve the economic environmental conditions worldwide.
Central and Eastern Europe is described as the region of possibilities, with many projects now gaining both commercial support and political momentum. Europe’s eyes are opening to the opportunities of strategic alliances to connect European gas supply sources from the Baltic, Adriatic, and Black Seas to the rest of Europe.
At the end of 2017, the EU announced the signing of a grant agreement in which it will be contributing €101.4mn into the construction of Croatia’s Krk LNG terminal, which is more than a quarter of the overall cost of the project. The advancement of this terminal will prove positive for the region as it will increase the security of gas supply to central and south-eastern Europe.
For the gas industry, I believe there are four notable trends which will take place and develop in 2018: 1 - Increasingly dynamic gas pricing Throughout 2017 we have seen commodity prices rising and gas prices have followed this trend, being dragged up by rising oil and coal prices as well as various supply and demand issues more specific to gas.
The views expressed are the author’s own, and do not reflect any position on behalf of his former company. 2018 will start by a North Hemisphere winter with Brent oil prices closer to $60-65 rather than $50-55 and a sustained demand for LNG from China and possibly Southern Europe in case of recurrent unavailability of French nuclear power at a time when expected big supply plants are facing delays. This should lead to a sustained level for both LT contract prices (oil) and subsequent “spot” price levels (supply-demand) before the real wave of additional LNG materializes.
2017 turned out to be a very good year for LNG buyers, prices having dropped dramatically from earlier highs, and with every prospect that they would stay that way for a while. The trade press was full of articles about the “glut” of LNG supplies. Some projected the glut and low prices would be around until the mid-2020s. It hasn’t worked out that way, and so soon. Where did the glut go, and who stole it?
The shale gas revolution, brought about through the combination of hydraulic fracturing (“fracking”), horizontal drilling technologies has slashed consumer prices for both gas and electric in this country, while reducing air emissions by incredible volumes.
It is well known that unconventional gas – shale gas, tight gas, and natural gas associated with shale oil production – has transformed natural gas supply across North America. Currently, about 60 billion cubic feet of unconventional gas is produced daily in the US or about two-thirds of total US production. Going forward this fraction is expected to increase.
Though gas production has stabled in recent years, during the boom period from 2007 to 2012 shale gas production in the US expanded at an astounding average growth rate of over 50% per year, and thereby increased nearly tenfold over this short time period alone. Hydraulic fracturing technology, or “fracking”, as well as new directional drilling techniques, played key roles in this shale gas revolution, by allowing for extraction of natural gas from previously unviable shale resources.
Significant events this year have changed the face of the LNG shipping industry. Growing production in North America, Australia and elsewhere is leading to an abundance of natural gas.
Maritime LNG trade is a crucial link in the natural gas supply chain for many nations where domestic demand exceeds available supply. Despite the previous oversupply, LNG vessels are being rapidly absorbed thanks to the current robust global demand.
With the impending IMO sulphur cap becoming effective in 2020, ships will have to use marine fuel with a sulphur content of no more than 0.5% compared to the current limit of 3.5%. Interested in discovering more, Gastech Insights spoke with maritime solution leaders Bernhard Schulte Shipmanagement.
The Association of South East Asian Nations (ASEAN) celebrates its 50th anniversary this year. It consists of 10 countries, with a combined GDP of US$2.8 trillion, making it the 6th largest economy in the world.
The opinions expressed here are those of the author, a columnist for Reuters. Graphic of China's LNG imports - view the table here. Liquefied natural gas (LNG) is supposed to be a deeply over-supplied market, but it doesn't appear to be behaving as such in the major consuming region of Asia with strongly rising prices amid robust demand growth.
Interfax Energy - Thailand is set to import 36 mtpa of LNG by 2030, up from around 2.9 mtpa in 2016, as gas domestic production is set to decline rapidly after 2020, an official from the country’s Ministry of Energy told delegates at the Gas Asia Summit in October.
The Central and Eastern European region is undergoing a process of profound change in terms of its interconnected energy market dynamics. Inside this eBook, you will find 8 industry experts' comments on the constantly evolving Central and Eastern European (CEE) gas market and discover why it is the region of possibilities.