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Liquefied Natural Gas Market Worldwide

Natural gas accounts for 20% of the world’s marketed energy, with more than 120 quadrillion Btu of natural gas is consumed globally. It is a critical fuel in the generation of electric power and heat. Furthermore, it is used in industry as an energy source and/or feedstock for manufacturing fertilizer, pulp and paper, metals, chemicals, textiles, plastics and pharmaceuticals, among others.

Nearly 120 quadrillion Btu of natural gas is consumed globally. Some gas-producing countries, such as those in the Middle East and Africa, are able to satisfy all of their natural gas demand through domestic supply. Others, such as Japan and South Korea, are almost entirely reliant on natural gas imports to fuel power plants, industrial processes and provide heat. Still others, including those in Europe and North America, are able to partially meet natural gas demand with domestic supply while supplementing the rest with imports.

Over a quarter of global natural gas demand is fulfilled by imported natural gas. Countries in Europe and Eurasia are by far the leading importers of natural gas and import about 450 billion cubic meters of the fuel, or about 40% of the region’s natural gas requirements, annually. This region is followed in natural gas imports by the Asia Pacific and North America regions. Together the three regions account for 95% of global natural gas imports.

Because of its low density and high volume, natural gas is costly and inefficient to store and transport over long distances in its gaseous state. Moreover, crossing international borders via pipeline amplifies commercial and investment risks and complexities. Pipeline construction and maintenance costs, along with technical challenges, escalate with distance. Further, when the pipeline must traverse countries which are not involved as gas producers or consumers, concessions may be difficult and costly to obtain.

Liquefied natural gas (LNG) is natural gas which has been converted to liquid form for ease of storage or transport. Liquefying natural gas allows access to natural gas from regions with vast production potential to end markets too distant to be connected by pipeline. The global market for LNG accounts for nearly 10% of total annual worldwide natural gas consumption. Pipeline gas continues to account for the majority of global natural gas trade. However, nearly 30% of natural gas trade is now provided by LNG.

Despite the global economic recession in 2008 and 2009, global demand for LNG increased by nearly 22% in volume terms from 2005 to 2009. North American imports are expected to more than double from 16 Bcm in 2009 to 40 Bcm in 2013. Over the past five years, significant investments in the LNG supply chain have been made around the world and global liquefaction capacity has increased by 40%.

LNG has assumed an increasingly significant role in the energy security of several nations around the world. LNG markets are expected to show robust growth over the next several years, driven largely by supply push. Driven by relatively low prices and a global economic recovery, LNG demand is expected to catch up with supply-chain capacity by 2014. LNG markets will likely experience renewed investments in supply-chain infrastructure in the years beyond 2015.

While the US currently accounts for less than 6% of global LNG imports, US domestic natural gas demand and supply dynamics have dramatically influenced global LNG investments over the past few years. Given the concurrent and rapid increases in US unconventional gas production capacity and LNG regasification and storage capacity, the US is likely to continue to re-shape global LNG trading in years to come.

Liquefied Natural Gas Market Worldwide includes a broad review of the global market for liquefied natural gas. Key technologies leveraged within the LNG supply chain, including liquefaction, shipping and regasification technologies are discussed. An overview of the LNG market structure, mechanisms and key participants is provided. Additionally, recent investments in LNG liquefaction capacity, shipping capacity, and regasification capacity across regions and major participating nations are discussed.

The report provides historic and forecast global energy demand 2005 to 2015 and energy demand drivers and trends are reviewed. Further, world energy supply sources 2005 to 2015 are discussed and the linkage between domestic natural gas production, import dependence and LNG trading are outlined. Finally, historic and forecast international LNG trade volumes and values are presented for the period 2005-2015.

Read an excerpt from this report below.

Report Methodology

The information in Liquefied Natural Gas Market Worldwide is based on primary and secondary research. Primary research entailed gathering information from firms and individuals involved in LNG project development, marketing, distribution and sales of LNG and natural gas, utilities, analysts and consultants to the energy industry to obtain insight into the technologies and market factors shaping the industry. Secondary research entailed data gathering from relevant sources, including government and industry publications, company literature and corporate annual reports.

What You’ll Get in This Report

Liquefied Natural Gas Market Worldwide contains important insights and projections regarding the future of this market around the world. The report provides both the comprehensive analysis and data. Subscribers will benefit from extensive data, presented in easy-to-read and practical charts, tables and graphs.

Liquefied Natural Gas Market Worldwide includes a broad review of the global market for liquefied natural gas. Key technologies leveraged within the LNG supply chain, including liquefaction, shipping and regasification technologies are discussed. An overview of the LNG market structure, mechanisms and key participants is provided. Additionally, recent investments in LNG liquefaction capacity, shipping capacity, and regasification capacity across regions and major participating nations are discussed.

The report provides historic and forecast global energy demand 2005 to 2015 and energy demand drivers and trends are reviewed. Further, world energy supply sources 2005 to 2015 are discussed and the linkage between domestic natural gas production, import dependence and LNG trading are outlined. Finally, historic and forecast international LNG trade volumes and values are presented for the period 2005-2015.

How You’ll Benefit from This Report

If your company is already doing business in the market for liquefied natural gas, or is considering entering the marketplace, you will find this report invaluable. It provides a comprehensive package of information and insight not offered in any other single source. You will gain a thorough understanding of the current global market for liquefied natural gas, as well as projected markets and trends through 2015.

This report will help:

  • Marketing managers understand the market forces shaping the market for liquefied natural gas and identify market opportunities.
  • Research and development professionals stay on top of competitor initiatives and explore demand for LNG.
  • Business development executives understand the dynamics of the market and identify possible partnerships.
  • Information and research center librarians provide market researchers, product managers, and other colleagues with the vital information they need to do their jobs more effectively.


Market Insights: A Selection From The Report


The development of LNG supply chain technologies has recently enabled natural gas trading across more geographically dispersed regions as it is now possible to liquefy, ship and regasify natural gas. It is generally more cost efficient to process and ship LNG than it is to pipe natural gas across distances of greater than 2000 miles.

Europe
Although natural gas demand in OECD Europe is growing at a low rate, Europe’s dependence on imported natural gas continues to increase as local natural gas production declines. The region’s dependence on imported natural gas is expected to increase from 44% in 2006 to 48% in 2015 and to over 57% in 2030. Pipeline supplies of over 190 billion cubic meters per annum from Russia and Algeria account for more than 30 percent of the region’s total consumption. Additionally, LNG imports of over 55 billion cubic meters, mostly from supplying nations in Africa and the Middle East, are also used to supplement consumption. European reliance on LNG is expected further expected to increase as recurring problems with Russian supplies, its largest source of pipeline natural gas, persist.

Population Growth
Global population growth is a significant driver of the demand for energy as increases in population translates to greater demand for electricity, transportation and related goods and services. Over the past five years, global population has grown 6% from 6.5 billion to 6.9 billion. Global population is expected to reach nearly 7.3 billion in 2015, increasing at a rate of 1.1% per year for the next five years.

In the News


                                          

Recovering Nations Increasingly Count on Liquefied Natural Gas as Critical Fuel in Production of Power and Heat

New York, May 26, 2010 - Liquefied natural gas has assumed an increasingly significant role in the energy security of several nations around the world, and the value of internationally traded liquefied natural gas that can be efficiently stored and transported by ships is expected to grow by an average of 17% per year from $73 billion in 2009 to over $180 billion in 2015 supported by strong volume growth and higher prices, according to Liquefied Natural Gas Market Worldwide by leading industrial market research firm SBI Energy

Natural gas currently accounts for 20% of the world’s marketed energy, which makes it a critical fuel in the generation of electric power and heat. It is the second most frequently utilized fuel for the generation of electricity in the United States and third in the world.

Over the past year, global recessionary conditions have moderated demand for energy as consumer demand for goods and services and related manufacturing has slowed. However, as most nations make a much anticipated recovery over the next 12 to 18 months, energy consumption will continue to rise rapidly driven significantly by demand from economically developing nations.  SBI Energy predicts global energy consumption will increase by 19% from 462 quadrillion British thermal units (Btu) in 2005 to over 551 quadrillion Btu in 2015.

“As an efficient and economical means of transporting natural gas, the need for the liquefied variety is driven by natural gas demand in various parts of the world that do not have adequate domestic or pipeline supplies of this fuel,” says Shannon Shuflat, SBI Energy analyst and co-author of the report. 

Population growth and economic growth are key factors driving increased demand for energy over the next five years. As population increases, the requirement for institutional services including infrastructure, government and healthcare along with potential demands for various commercial services also increases.  In a dynamic twist on the classic domino effect, these increases will lead to more industrial activity such as manufacturing, mining and construction, transportation and the requirement for and ability to afford increased commercial and retail services, larger homes and more energy using appliances and equipment, all of which leads to rising energy requirements. Economic prosperity dictates the degree to which these requirements and potential demands are met.

Liquefied Natural Gas Market Worldwide includes a broad review of the global market for liquefied natural gas. Key technologies leveraged within the liquefied natural gas supply chain, including liquefaction, shipping and regasification technologies are discussed. An overview of the liquefied natural gas market structure, mechanisms and key participants is also provided. Additionally, recent investments in liquefied natural gas liquefaction capacity, shipping capacity, and regasification capacity across regions and major participating nations are discussed.

About SBI Energy
SBI Energy, a division of MarketResearch.com, publishes research reports in the industrial, energy, building/construction, and automotive/transportation markets.  SBI Energy also offers a full range of custom research services. 

 

  • Executive Summary
    • Introduction
      • Table Global Natural Gas Consumption and Imports (in billion cubic meters)
    • LNG Supply Chain
      • Exploration and Production
      • Liquefaction
      • Shipping
      • Cargo Capacity
      • Cargo Containment Systems
      • Carrier Propulsion Systems
        • Table World LNG Fleet, 2009-2012
      • Regasification
      • Offshore Regasification
    • LNG Market Structure
    • Market Size and Demand Trends
      • Global Energy Demand
      • Global Energy Supply
    • Report Format
    • Report Methodology
    • Abbreviations and Definitions
      • Table Abbreviations Utilized in Report
  • LNG Technology
    • Introduction
    • Characteristics of LNG
      • Table Typical Chemical Composition of LNG
    • LNG Technology
      • Exploration and Production
      • Liquefaction
      • Liquefaction Processes
      • APCI Multi-Component Refrigerant Process (MCRTM)
      • Phillips Optimized Cascade(R) Process
      • Statoil/Linde Mixed Fluid Cascade Process (MFCP)
      • Shell Double Mixed Refrigerant Process (DMR)
      • Black & Veatch PRICO(R) Process
      • Axens Liquefin(TM) Process
      • Shipping
      • Ship Capacity
      • Cargo Containment Systems
        • Table Summary of LNG Carrier Containment Systems
      • Moss(R) Containment System
      • Membrane Containment Systems
      • NO96 System
        • Table GTT Membrane-Design LNG Carrier Containment Systems
      • Mark III System
      • CS1 System
      • Carrier Propulsion Systems
      • Dual-Fuel Diesel Electric (DFDE)
      • Slow Speed Diesel with Reliquefaction (DRL)
      • Regasification
      • Receiving
      • Storage
      • Single Containment Tank
      • Double Containment Tank
      • Full Containment Tank
      • Membrane Tank
      • In-Ground Tank
      • Vaporization
      • Open Rack Vaporizers
      • Submerged Combustion Vaporizers
      • Intermediate Fluid Vaporizers
      • Ambient Air Vaporizers
      • Offshore Regasification
      • Odorization and Send-Out
  • LNG Market Structure
    • Introduction
      • Table Global Natural Gas Consumption and Imports (in billion cubic meters)
    • Early Development of LNG Market
      • Table Significant Milestones in Early LNG Market Development
      • Table Global Natural Gas Consumption and Imports (in billion cubic meters)
    • LNG Supply Chain
    • LNG Project Costs
    • Sales and Purchase Agreements
      • Table Representative LNG Contracts in Effect, 2010 (in Mtpa)
    • LNG Short-Term Market
    • Pricing
    • LNG Trade
      • Liquefaction and Export
        • Table LNG Exporting Countries, 2009
    • New Liquefaction Capacity
      • Russia
      • Indonesia
      • Norway
      • Yemen
      • Peru
      • Shipping
        • Table World LNG Fleet, 2009-2012
      • Import and Regasification
        • Table LNG Importing Countries, 2009
      • Asia
      • China
      • India
      • Europe
      • Belgium
      • Italy
      • United Kingdom
      • North America
      • Canada
      • Mexico
      • United States
        • Table US LNG Marine Import Terminals, 2009 Year-End Capacity (in Bcfd)
        • Table Proposed US Offshore Oil and Natural Gas Development, 2010
      • Central and South America
      • Argentina
      • Brazil
      • Chile
  • Market Size and Demand Trends
    • Introduction
    • Demand Drivers and Trends
      • Global Energy Demand
        • Table Organization for Economic Cooperation and Development Member Countries, 2010
      • Energy Demand Drivers
      • Population Growth
      • Economic Growth
      • Global Energy Supply
      • Liquid Fuels
        • Table World's Proved Oil Reserves, 2010
      • Coal
        • Table Top Five Producers of World Hard Coal, 2010
      • Natural Gas
        • Table World's Proved Reserves of Natural Gas, 2009
      • Global Natural Gas Consumption
      • Global Natural Gas Production
      • Regional Natural Gas Demand Trends
        • Table Global Natural Gas Imports by Region and Type, 2008 (in billion cubic meters)
      • North America
      • Europe
      • Asia
      • Central and South America
    • Historic and Current LNG Market Size
      • Asia
      • Europe
      • North America
    • LNG Market Projections
  • Participant Profiles
    • Overview
      • Table Description of Companies Profiled
    • BP
      • Table BP Profile
      • Corporate Background
      • Product and Brand Portfolio
      • Performance
      • Company News
      • Acquisitions and Divestitures
      • Personnel Changes
    • Citigroup
      • Table Citigroup Profile
      • Corporate Background
      • Product and Brand Portfolio
      • Performance
      • Acquisitions and Divestitures
      • Personnel Changes
    • ConocoPhillips
      • Table ConocoPhillips Profile
      • Corporate Background
      • Product and Brand Portfolio
      • Performance
      • Acquisitions and Divestitures
      • Personnel Changes
    • Duke Energy
      • Table Duke Energy Profile
      • Corporate Background
      • Product and Brand Portfolio
      • Performance
      • Acquisitions and Divestitures
      • Personnel Changes
    • Foster Wheeler AG
      • Table Foster Wheeler AG Profile
      • Corporate Background
      • Product and Brand Portfolio
      • Performance
      • Acquisitions and Divestitures
      • Personnel Changes
    • General Electric
      • Table General Electric Profile
      • Corporate Background
      • Product and Brand Portfolio
      • Performance
      • Acquisitions and Divestitures
      • Personnel Changes
    • Royal Dutch Shell plc
      • Table Royal Dutch Shell plc Profile
      • Corporate Background
      • Product and Brand Portfolio
      • Performance
      • Acquisitions and Divestitures
      • Personnel Changes
  • Selected Corporate Addresses

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