Global LNG Hub
No Result
View All Result
  • Login
  • Premium Content
    • All
    • Asian LNG
    • Australian LNG
    • European LNG
    • FLNG
    • Global LNG
    • LNG Africa
    • LNG Bunkering
    • LNG Latin America
    • LNG North America
    • LNG Projects
    • LNG Trade and Pricing
    • Middle East LNG
    • Small Scale LNG
    • Others
  • Blog
  • Events
  • Industry Links
    • LNG Industry Association
    • LNG Market Advisors
    • Government Body
    • LNG Market Information
    • LNG Legal Advisors
    • LNG Research Institute
    • LNG Training & Education
  • Newsletter
  • Videos
  • Other Hubs
    • GLOBAL MARITIME HUB
    • EUROPEAN GAS HUB
    • THE COAL HUB
  • Subscribe
  • My account
  • Login
SUBSCRIBE
  • Premium Content
    • All
    • Asian LNG
    • Australian LNG
    • European LNG
    • FLNG
    • Global LNG
    • LNG Africa
    • LNG Bunkering
    • LNG Latin America
    • LNG North America
    • LNG Projects
    • LNG Trade and Pricing
    • Middle East LNG
    • Small Scale LNG
    • Others
  • Blog
  • Events
  • Industry Links
    • LNG Industry Association
    • LNG Market Advisors
    • Government Body
    • LNG Market Information
    • LNG Legal Advisors
    • LNG Research Institute
    • LNG Training & Education
  • Newsletter
  • Videos
  • Other Hubs
    • GLOBAL MARITIME HUB
    • EUROPEAN GAS HUB
    • THE COAL HUB
  • Subscribe
  • My account
  • Login
Global LNG Hub
Home LNG Demand

Small will be the new big for the LNG market

Editor by Editor
4 years ago
min read2 min
Small will be the new big for the LNG market
Share on FacebookShare on TwitterShare on Linkedin

By Shefali Shokeen, Senior Research Analyst, Drewry Maritime Research.

RELATED POSTS

Global gas supply to tighten in 2023

Global gas supply to tighten in 2023

3 weeks ago
Asian LNG prices are now at a $3/MMBtu premium to European LNG prices

Asian LNG prices are now at a $3/MMBtu premium to European LNG prices

3 weeks ago
European LNG imports rise to over 111 Million tonnes

European LNG imports rise to over 111 Million tonnes

4 weeks ago

Low prices, abundant supply and an aggressive shift towards cleaner gas for energy generation are creating strong demand for LNG, not just from large buyers, but also from small importers.

Small-scale LNG projects (production and regasification capacity of less than 500,000 tonnes per annum) have reduced capex and are suitable for countries with low LNG consumption. For example Gibraltar has set up a small LNG import terminal with a total storage capacity of 5,000 cbm, which will directly provide fuel to the power plant located near the port.

It is also true that it is becoming increasingly difficult to secure investment for mega LNG export projects by fixing cargoes on long term contracts. Due to the increasing number of LNG suppliers, importers are opting for shorter term volume contracts. This makes small scale LNG projects attractive, which are cheaper to build and where there is less risk.

Although the number of small LNG export projects is currently limited new facilities are beginning to emerge. In the US for example, a small-LNG export project in Florida with three trains of 0.33 MTPA capacity has already been approved by the FERC.

Small LNG export projects and average liquefaction capacity (mtpa)

Impact on LNG shipping

Asian countries such as Indonesia, Philippines and China, along with some European countries will also see growth in the number of small-scale LNG imports terminals and in turn this will create demand for small LNG vessels.

On the export side, the list of LNG exporters will continue to diversify in the future as countries with moderate gas reserves develop opportunities to export LNG. In the near term, we expect countries in Africa to follow the lead set by the US by investing in small-scale LNG export projects. In turn, this will generate demand for appropriate shipping capacity.

The existing fleet of small LNG (less than 50,000 cbm) vessels consists of 27 LNG carriers and 17 LNG/LPG carriers, plus some LNG bunkering units. But most of the LNG and LNG/LPG ships are engaged in petchem gas trades and they are not expected to service new small scale LNG export projects. LNG bunkering vessels are a potential source of competition, but the existing fleet is dedicated to LNG bunkering operations, while all of the vessels on order are also earmarked for LNG bunkering.

In order to achieve first mover advantage, some shipowners have already started ordering small LNG vessels. Five small-scale LNG carriers were in fact ordered in 2018 and in 2019 and beyond we expect to see more orders for small LNG carriers. Small is therefore likely to become the new big for the LNG shipping market.

Tags: By Shefali ShokeenDrewryDrewry Maritime Researchliquefaction capacityLNG shippingsmall scale LNG
Editor

Editor

Related Posts

Global gas supply to tighten in 2023
LNG Contracts & Pricing

Global gas supply to tighten in 2023

3 weeks ago
Asian LNG prices are now at a $3/MMBtu premium to European LNG prices
LNG Contracts & Pricing

Asian LNG prices are now at a $3/MMBtu premium to European LNG prices

3 weeks ago
European LNG imports rise to over 111 Million tonnes
Infrastructure

European LNG imports rise to over 111 Million tonnes

4 weeks ago
The value of global LNG doubled in 2022
LNG Contracts & Pricing

The value of global LNG doubled in 2022

1 month ago
The Asian LNG premium makes a return
LNG Contracts & Pricing

The Asian LNG premium makes a return

1 month ago
Chinese LNG demand in 2023?
LNG Contracts & Pricing

Chinese LNG demand in 2023?

1 month ago

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

No Result
View All Result

Trending Posts

Henry hub prices slide below $3

Henry hub prices slide below $3

2 days ago
Spot LNG trade fell in 2022

Spot LNG trade fell in 2022

19 hours ago
lng_market_analysis

European and Asian gas prices below last year’s December levels

4 weeks ago
Load More

Recent Post

Spot LNG trade fell in 2022

Spot LNG trade fell in 2022

19 hours ago
Global gas price correlation remains strong

Global gas price correlation remains strong

21 hours ago
Henry hub prices slide below $3

Henry hub prices slide below $3

2 days ago
Mauritania/Senegal on track to begin LNG exports

Mauritania/Senegal on track to begin LNG exports

3 days ago
LNG-prices

Weekly trend of natural gas and LNG prices – January 23

3 days ago
Freeport-LNG

Freeport LNG completes repairs

4 days ago
Load More

Online platform for sharing analysis and information on Global and regional LNG markets. Weekly newsletter each Wednesday more info

Categories

  • Asian LNG
  • Australian LNG
  • European LNG
  • Global LNG
  • LNG Africa
  • LNG Bunkering
  • LNG Latin America
  • LNG North America
  • LNG Projects
  • LNG Trade and Pricing
  • Middle East LNG
  • Small Scale LNG
  • FLNG

Recent Posts

Spot LNG trade fell in 2022

Global gas price correlation remains strong

Henry hub prices slide below $3

Energise your Wednesday!

Sign up to receive our weekly newsletter with new LNG market reports, presentations & analysis. Every Wednesday!

By signing up, I agree to our TOS and Privacy Policy.

© 2020 GlobalLngHub | All Rights Reserved

No Result
View All Result
  • Premium Content
    • All
    • Asian LNG
    • Australian LNG
    • European LNG
    • FLNG
    • Global LNG
    • LNG Africa
    • LNG Bunkering
    • LNG Latin America
    • LNG North America
    • LNG Projects
    • LNG Trade and Pricing
    • Middle East LNG
    • Small Scale LNG
    • Others
  • Blog
  • Events
  • Industry Links
    • LNG Industry Association
    • LNG Market Advisors
    • Government Body
    • LNG Market Information
    • LNG Legal Advisors
    • LNG Research Institute
    • LNG Training & Education
  • Newsletter
  • Videos
  • Other Hubs
    • GLOBAL MARITIME HUB
    • EUROPEAN GAS HUB
    • THE COAL HUB
  • Subscribe
  • My account
  • Login

© 2020 GlobalLngHub | All Rights Reserved

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Cookie settingsACCEPT
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT

Energise Your Wednesday!

SIGN UP to receive our weekly newsletter with new LNG market reports, presentations & analysis. EVERY WEDNESDAY!

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?