LNG – A REVIEW OF CURRENT AND FUTURE MARKETS
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The LNG industry is experiencing strong growth in its current market- posting an impressive 297.63 bcm in LNG imports during 2010(BP 2011: 29). However, it is still a budding industry because Russia and Iran- owners of the largest gas reserves in the world are still fledgling LNG exporters (Economides and Wood 2009). According to Kumar et al. (2011) LNG is also a clean substitute over petrol and diesel. Moreover the Asian tigers like Japan, China and India are still growing their economies (ExxonMobil 2010: 8). Thus, the Asian tigers’ LNG demand, the eco-nature of LNG, coupled with Russia and Iran’s LNG exports - can create a more robust LNG market in the future. This paper examines the existing and future market of LNG – in the light of major LNG players in each region.
The world is now frowning on “dirty” energy. Clearly, this is shown in the way natural gas contends with traditional fuels, from a “clean” and “efficiency” outlook (Economides and Wood 2009: 1). In fact, if the world’s economy keeps growing –fuel pollutants are expected to increase by at least 3% (CO2Now.org 2011). Although there are projections that by 2030, emissions in OECD countries will be lessened drastically (ExxonMobil 2010: 34) - these reductions may not make much difference- on a global scale.
In addition, the world’s clarion call is for an uncontaminated source of energy. This explains why there is a global crave for substitute fuels over conventional fuels like diesel and petrol (Astbury 2008: 397). Thus, natural gas- in the form of liquefied Natural Gas (LNG hereafter) is giving the world what it wants. In fact, LNG is non-toxic, clean and green (Kumar et al. 2011: 4265).
Clearly, the call for clean energy, coupled with other factors such as favourable natural gas prices, growing gas imports, cheaper LNG costs and the crave of gas producers to “cash” their gas assets- has set the ball rolling for a strong global LNG market. (EIA 2003: v). Moreover, there are also tons of untapped natural gas resources (Economides and Wood 2009: 1) just waiting to be liquefied. The rest of this paper will be structured follows; section 2 is an overview of the LNG market at the global level, section 3 reviews the LNG market at the regional level, section 4 concludes.
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- Nana Yaw Addo-Korie (Author), 2011, LNG - A Review of Current and Future Markets, Munich, GRIN Verlag, https://www.grin.com/document/187167