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    Course On LNG Business-Session4

    Uploaded by

    Rahul Atodaria
    The global LNG market has grown dramatically in the last 50 years. While the industry first started in the 1960s with Algeria exporting to the UK, today there are 20 exporting and 42 importing countries that traded 314 MMTPA of LNG in 2018. Qatar and Australia are now the dominant suppliers and Japan remains the largest buyer, though China's imports are growing rapidly at around 40% per year. Traditionally based on long term contracts, around 32% of LNG is now traded on short term contracts or spot markets. The number of importing countries and receiving terminals continues to increase significantly.

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    Course On LNG Business-Session4

    Uploaded by

    Rahul Atodaria
    124 views33 pages
    The global LNG market has grown dramatically in the last 50 years. While the industry first started in the 1960s with Algeria exporting to the UK, today there are 20 exporting and 42 importing countries that traded 314 MMTPA of LNG in 2018. Qatar and Australia are now the dominant suppliers and Japan remains the largest buyer, though China's imports are growing rapidly at around 40% per year. Traditionally based on long term contracts, around 32% of LNG is now traded on short term contracts or spot markets. The number of importing countries and receiving terminals continues to increase significantly.

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    LNG

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    Course on Lng Business-session4

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    The global LNG market has grown dramatically in the last 50 years. While the industry first started in the 1960s with Algeria exporting to the UK, today there are 20 exporting and 42 importing countries that traded 314 MMTPA of LNG in 2018. Qatar and Australia are now the dominant suppliers and Japan remains the largest buyer, though China's imports are growing rapidly at around 40% per year. Traditionally based on long term contracts, around 32% of LNG is now traded on short term contracts or spot markets. The number of importing countries and receiving terminals continues to increase significantly.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    124 views33 pages

    Course On LNG Business-Session4

    Uploaded by

    Rahul Atodaria
    The global LNG market has grown dramatically in the last 50 years. While the industry first started in the 1960s with Algeria exporting to the UK, today there are 20 exporting and 42 importing countries that traded 314 MMTPA of LNG in 2018. Qatar and Australia are now the dominant suppliers and Japan remains the largest buyer, though China's imports are growing rapidly at around 40% per year. Traditionally based on long term contracts, around 32% of LNG is now traded on short term contracts or spot markets. The number of importing countries and receiving terminals continues to increase significantly.

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    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 33
    At a glance
    Powered by AI
    The key takeaways are that the LNG industry is relatively young at around 5 decades old, Japan was the first major buyer, and Qatar and Australia are now dominant suppliers. The industry has grown from around 10 exporting and importing countries trading 100 MMTPA to over 20 exporting and 42 importing countries trading over 300 MMTPA.

    Some of the historical developments of the LNG industry include the first liquefaction happening in the early 20th century in the USA, commercial cross-country trade starting in 1960, Algeria being the first exporter and the UK being the first importer.

    The LNG trade has evolved from primarily involving long-term contracts between one exporter and importer to now having around 32% traded on short-term contracts and spot basis. The number of participating countries has also increased significantly over the years.

    COURSE ON LNG

    BUSINESS
    Session-4
    World LNG market
    LNG Industry historical developments

    Start of •Though first gas liquefication happened in early 20th century in USA its
    commercial use for cross country trade started only in 1960.
    •Hence it is only five decade old industry
    business •Japan was the first major buyer of LNG and till today it is a major buyer

    Growth of •Algeria was first exporter and UK first importer


    •Today Qatar and Australia are dominant suppliers and Japan is dominant buyer
    •Till end of 20th century, there were about 10 countries each in the business of

    business imports and exports with LNG trade volume of about 100MMTPA. Today 20
    countries export and 42 countries import LNG with a trade volume of 314 MMTPA

    Transaction •Traditionally LNG started as a one to one business involving long term, firm
    supply contracts with “Take or Pay” provisions
    •In last 10 years industry has undergone dramatic change and today 32% of LNG
    structure traded is on short term contracts and/or on spot basis
    Gas consumption and international trade

    Pipeline v/s LNG Overall consumption pattern

    Trend in LNG and pipeline supplies


    WORLD LNG MARKET-2018-SUMMARY

    • 406 MMTPA LIQUEFICATION CAPACITY


    • 314 MMTPA TRADED (8.3% GROWTH WRT 2017)
    Trade and • 99.3 MMTPA TRADRD ON SPOT and Short term (32% OF
    capacity TOTAL) ( 25% in spot only and balance 7% on short term)

    • 76% of global demand in Asia (Japan largest buyer & China)


    • 44% OF WORLD SUPPLY FROM ASIA PACIFIC
    • Two major suppliers: (a)24.5% Qatar (b)21.2% Australia
    Regional
    • China imports -Rapid growth: 38% in 2018;42% in 2017; 38.9%
    distribution in 2016

    • 20 EXPORTING COUNTRIES
    • 42 IMPORTING COUNTRIES(INCLUDING 9 NEW since 2015)
    • 868 MMTPA IS COMBINED CAPACITY OF IMPORT TERMINALS
    Terminals • App.30 NEW IMPORT TERMINALS ADDED since 2015
    GLOBAL LNG INDUSTRY GROWTH

     Most remarkable phenomenon is the number and geographic reach of countries that have started importing LNG. Argentina,
    Brazil, Canada, Chile, China, Kuwait, Mexico, and the United Arab Emirates have begun importing LNG since 2006, joining
    the existing 15 importers which include Belgium, the Dominican Republic, France, Greece, India, Italy, Japan, Portugal,
    Puerto Rico, the Republic of Korea (Korea), Spain, Taiwan, Turkey, the United Kingdom and the United States.
    Historical trend in LNG export share of
    different exporting countries
    Significant developments in 2018
    US LNG available in Very rapid growth in
    different regions China
    Consistent 40% range
    growth rate (Imports
    increased by 38% in 2018,
    42% in 2017 following
    38.9% growth in 2016)

    More than 14 million T of


    LNG received (in 2018) at
    terminals loaded on road
    tankers
    LNG projects & capacity utilisation,2017
    LNG new projects development,2016
    LNG SHIPS IN WORLD-2018(563 NOS. TOTAL)
    AVERAGE DISTANCE OF TRANSPORT FOR LNG INCREASING
    LNG Receiving terminals
    Trend LNG receiving terminals built
    LNG Receiving terminals and their capacity
    utilisation
    LNG Receiving terminals and shipsize it
    can berth
    LNG Receiving terminals-
    FSRU becoming a popular concept
    Trend in world LNG prices
    World LNG price trend
    11.5

    10.5

    9.5
    Price in US$/mmbtu

    8.5

    7.5

    6.5

    5.5

    4.5

    3.5

    Japan China United Kingdom Spain Brazil


    LNG SUPPLIERS-MAJOR INCREMENTAL SUPPLIES
    IN 2018 VIS-À-VIS 2017
    LNG IMPORTERS-MAJOR INCREMENTAL PURCHASE
    IN 2018 VIS-À-VIS 2017
    Trend in spot and short term LNG cargoes
    LNG Cargo reexports analysis
    LNG – Global Market
    LNG flow direction
    To change

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