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LNG: fuel of the future?

Source: Shefali Shokeen, Senior Research Analyst, Drewry Maritime Research With less than two years before the sulphur cap comes into force, LNG is looking more plausible as the marine fuel of the 21st Century. Many shipowners are still weighing up the dilemma of how to comply with the stringent new rules on sulphur emissions, due to come into force in January 2020....

Profit-sharing provisions in LNG SPA’s with delivery to the European Union

Asian LNG spot prices
By Emmanuel Reille & Delphine Jacquemont The main difference between a liquefied natural gas (LNG) sale and purchase agreement (“SPA”) and a gaseous gas supply agreement lies in the greater flexibility afforded to both the purchaser and the seller with regard to the gas' final destination. Indeed, ships carrying LNG may modify their destination depending on demand and price fluctuations...

Developing an FSRU Project in New Markets: 10 Key Considerations

FSRU project development
By: Richard Nelson, Merrick White, Kristian Whitaker and Zoë Bromage (King & Spalding) As at 1 July 2017, the total number of operational floating storage and regasification units (“FSRUs”) globally stood at 26, with 23 operating as terminals and 3 as LNG tankers. A further 10 vessels were under construction, with options having been placed with shipyards for another 10 vessels.1 In...

Is Gas Global Yet?

global gas market
By Nikos Tsafos, The Center for Strategic and International Studies (CSIS) Is gas a global commodity, like oil? The question comes up often, and the answer is usually “not yet.” But the changes in today’s market seem profound and transformational. The liquefied natural gas (LNG) trade is expanding rapidly, connecting hitherto disparate markets. There is a growing market for buying and...

The (in)elasticity of the LNG Market and its Cargos

UK_gas_pricing
Since 2014 the US imposed different sanctions on Russia because of the Crimea conflicts and more recently the accusations of meddling in the 2016 US presidential elections. One of the most recent rounds of sanctions were signed by President Trump last year and impact the Russian energy sector, including LNG. The most recent sanctions on Russia were still settling in...

LNG: the glut that was and may never be

global-lng-supply
There was a certain air of triumphalism surrounding Anglo-Dutch major Shell’s statement in February that the world’s growing supply of LNG would be “comfortably” absorbed by rising demand in 2018, and that the much anticipated glut would never materialize. This glut has been much predicted, predicated on the apparent surplus of new LNG capacity coming on stream versus predictions of...

Yamal LNG – A Big Win for Russian Gas?

Yamal-LNG
On December 8, a first LNG cargo left Russia’s Yamal Peninsula. The event has been considered a great win not only by Yamal LNG shareholders but also by the Russian government, which sees the project as a first step to Russia’s becoming the world’s top LNG player. Yamal LNG was completed on time despite difficult Arctic conditions and technological...

How Will LNG Support Kuwait’s Energy Transition?

Kuwait LNG imports
Kuwait is mostly known as one of the world’s largest oil producing nations and as a leading member of OPEC. But the country was also a pioneer in 2009 when it became the first in the MENA region to import LNG via a floating storage and regasification unit. At the time, LNG was considered a stop-gap solution to address...

Collapse in LNG Contract Lengths Raise Future Supply Concerns

LNG commercial contracts
The average LNG contract length fell to a record low in 2017, raising concerns on the future supply of the chilled fuel. But, with just two new LNG projects green-lighted over the past two years, concern is growing that the market may be undersupplied in the medium-term. The number of short-term contracts – those two to five years in length...

Gas Market Reform – Death of Oil Indexation and Resulting Impact on Asian and Global LNG Prices

lng-pricing
With significant LNG oversupply, all of this competing gas will have an impact on global LNG prices in the short and medium term. Comparisons with how pricing evolved in the UK (1990s) and Europe (2000s) gives us an insight into what will most likely happen with Asian and global prices. • We have a proliferation of LNG supplies that are...

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global-lng-supply

Pakistan LNG Industry – A Policy Perspective

Pakistan has an LNG import infrastructure with capability of handling thirteen vessels per month with load size ranging from 143,000 CBM to 165,000 CBM....

What is driving LNG spot charter rates?

No Fukushima like disasters, demolitions have only been a handful and deliveries have remained strong, yet, LNG spot charter rates have touched the highest...
lng-pricing

LNG Derivatives Market Maturing

Cheniere & CME Group are developing a physically settled LNG futures contract, delivering at Sabine Pass. This will add to existing SGX & ICE...