global lng import export snapshot april 2017

The Global LNG Import / Export Snapshot Chris McManaman – April 2017

What does an LNG supply chain look like?

*http://www.giignl.org/lng-markets-trade-0

It looks like this…


…and this…

How big is the LNG market?

Global production is forecast to reach 292 MT in 2017, marking an increase of 34 MT from 2016

http://www.gasstrategies.com/sites/default/files/download/lng_outlook_2017_-_final_edition.pdf

The great pyramid is estimated to weigh 6.5 MT

http://www.gasstrategies.com/sites/default/files/download/lng_outlook_2017_-_final_edition.pdf

In 2016, the volume of LNG traded globally increased by 7.5 per cent

http://www.lngworldshipping.com/news/view,giignl-study-highlights-lng-growth_47063.htm

http://www.lngworldshipping.com/news/view,giignl-study-highlights-lng-growth_47063.htm

Global LNG supply will grow at a rate of 1.6 percent per annum over the next 20 years….

…with the U.S. leading the charge followed by Australia


*https://www.eia.gov/outlooks/ieo/nat_gas.cfm

Global LNG capacity additions by country, 2015-2019 Billions cubic feet per day


YOY changes in LNG exports by country, 2016


YOY changes in LNG imports by country, 2016


39 countries were importing LNG and 19 countries were LNG exporters. 74.6 MT (28%) of global LNG volumes were traded on a spot or short-term basis.

What is going on in the LNG market?

..no I didn’t cover every country…

…but I got a representative sample.

…Canada is hurting to become an LNG exporter…

…United States went from zero to hero…

…Eastern South America is trying to get away from LNG…

…Western South America is thrilled with the Panama Canal expansion…

…Southern Europe is now competing for LNG with Asia…

…Northern Europe is trying to integrate with each other…

…Eastern Europe is using LNG to reduce Russian dependency…

…Putin wants to Russia to be King of LNG…

…Northern Africa is still recovering from Arab Spring…

…Western Africa is going to become an LNG import/export machine…

…Eastern Africa has all the potential in the world….but is a mess…

…The middle east is moving to renewable energy…

…Asia is trying to get better contracts and secure supply around the world…

…Australia is a LNG export powerhouse…

…but they forgot to leave some LNG for themselves…

Algeria: Supplying minimum contractual volumes of LNG to France

*http://www.platts.com/latest-news/natural-gas/algiers/algerias-sonatrach-supplying-contractual-volumes-26644135

Angola: Angola gets more feed gas for LNG export as production starts at Mafumeira Sul

*http://www.platts.com/latest-news/natural-gas/algiers/algerias-sonatrach-supplying-contractual-volumes-26644135

Argentina: Argentina president vows to end LNG imports in 5-6 years

*http://www.platts.com/latest-news/natural-gas/buenosaires/argentina-president-vows-to-end-lng-imports-in-21971729

Australia: About to become the world's top exporter of LNG, but faces a gas shortage at home

*http://www.reuters.com/article/us-australia-lng-hoegh-lng-idUSKBN16R08L

Bangladesh: Bangladesh’s first LNG import terminal moves forward. It is scheduled to receive its first LNG delivery in early 2018.

*http://www.lngworldnews.com/petronet-to-build-950-mln-lng-terminal-in-bangladesh/

Belgium: The Zeebrugge LNG terminal is diversifying its offer to capitalise on the new and growing market for small-scale LNG

*http://interfaxenergy.com/gasdaily/article/25362/zeebrugge-lng-finds-small-scale-success/

Brazil: Brazil's hydropower shortfall will lead to increase use of fossil fuel-fired power, a move that will eventually lead to higher prices for consumers and a surge of LNG imports

*http://www.naturalgasworld.com/global-gas-perspectives/

Brunei: Hydrocarbon fuels recorded the highest contribution of 92.7 per cent of total exports, comprising crude oil and liquefied natural gas (LNG).

*http://borneobulletin.com.bn/trade-balance-recorded-bnd369-1m-january/

Canada: Kitselas First Nation signs LNG cash, land deal in northwestern B.C.

Chile: Trinidad and Tobago is Chile's principle gas supplier. Imports have risen as generation from natural gas expanded to offset limited supplies of hydroelectricity.

*http://www.platts.com/latest-news/natural-gas/santiago-chile/chiles-lng-imports-soar-in-december-exports-to-26672038

China: Korea, China, and Japan, which import half of all LNG in the world, will launch an LNG buyers' club. Korea, China and Japan import 55.54% of total LNG in the world.

*http://interfaxenergy.com/gasdaily/article/25220/bargain-price-spot-lng-proves-popular-in-china

Columbia: Colombia becomes the 36th LNG-importing country in 2016

*http://finance.yahoo.com/news/lng-brings-russia-china-closer-170000931.html

Côte d'Ivoire: Starting to construct and operate a three-million-tonne-a-year LNG regasification terminal. It is expected to be operational by mid-2018

*http://www.engineeringnews.co.za/article/total-led-consortium-awarded-cte-divoire-lng-terminal-rights-2016-11-25

Djibouti: Djibouti’s breaks ground on LNG export facility to strengthen its status as an energy trans-shipment hub for East Africa.

*http://aa.com.tr/en/africa/ethiopia-djibouti-china-to-launch-4b-nat-gas-project/613084

Egypt: Egypt signs $1bn contract with Russia, France & Oman to import LNG due to struggles with liquefied natural gas (LNG) shortages after the 2011 revolution

*https://www.rt.com/business/376454-egypt-lng-import-gas/

Equatorial Guinea: Equatorial Guinea are benefiting from European buyers trying to wean themselves off Russian gas by taking advantage of short routes from Africa for LNG.

*http://uk.reuters.com/article/uk-asia-lng-equatorial-idUKKCN11R0NR/

Ethiopia: Ethiopia, Djibouti, China to launch $4B nat. gas project. Under the project, Ethiopia could export 10M cubic meters of LNG to China each year


Estonia: Estonia has started to import LNG from Poland, in addition to Russia. Estonia is also considering importing LNG from Lithuania.


Finland: Tornio Manga LNG Terminal is set to become the biggest receiving terminal in the Nordic region upon its scheduled completion in April 2018.


France: French prices had to rise to encourage LNG imports, and therefore compete with Japan, China, India, and others

*http://blog.argusmedia.com/french-gas-becomes-worlds-most-expensive/

Germany: Germany examines LNG for port vehicles. A pilot phase involves mobile fueling stations and conversion of port vehicles to work on LNG.

*http://www.upi.com/Germany-examines-LNG-for-port-vehicles/1131483529416/

Greece: The Alexandroupolis LNG terminal in Northern Greece will enhance energy security of Bulgaria and differentiate its sources and routes of natural gas supply.

*http://www.ogfj.com/articles/print/volume-14/issue-4/features/india-wants-a-gas-based-economy.html

Indonesia: Indonesia, one of the world’s leading LNG exporters, faces a huge gas deficit as its demand is rising faster than its supply.

*http://interfaxenergy.com/gasdaily/article/23885/indonesia-seeks-more-lng-import-deals

Iran: Iran’s construction of LNG plants have stalled for years due to past international sanctions. Such facilities aren’t a priority given an impending worldwide glut of liquefied gas.

*http://gcaptain.com/iran-inaugurates-natural-gas-projects-south-pars-field/

Ireland: Irish concerned that a post-Brexit trade regime could lead to tariffs being imposed on gas piped into Ireland from Britain

*http://www.belfasttelegraph.co.uk/business/news/500m-gas-terminal-plan-resurrected-in-wake-of-brexit-35621339.html

Italy: Italy’s new national Energy Strategy (NES) will lay out plans to develop an additional LNG terminal and increase the country’s storage capacity.

*http://interfaxenergy.com/gasdaily/article/25138/italy-may-soon-have-a-new-lng-terminal

Jamaica: Jamaica could become a hub for the purchase and redistribution of LNG in the region as it moves to LNG fueled power plants

Japan: India and Japan have agreed to work together to pushing for the relaxation of the destination clause in long-term LNG supply contracts. *http://www.thehindubusinessline.com/economy/indiajapan-to-push-for-removal-of-destination-clause-in-lng-contracts/article8106985.ece

Jordan: Egypt will export gas to Jordan when its own supply is assured, i.e. in 2018 or 2019.

*http://www.globes.co.il/en/article-egypt-commits-to-supply-gas-to-jordan-from-2018-1001184302

Kazakhstan: Kazakhstan has launched an LNG-fired power plant in Astana. LNG is supplied to the plant by Russia.


Kenya: The Kenyan government is talking to two Floating Storage Regasification Unit companies that would be able to fund and install an LNG import vessel at Mombasa


Lithuania: Importing Norwegian LNG during the off-the- heating-season period when LNG should be cheaper than Russian gas

*http://www.gulf-times.com/story/543586/Qatar-set-to-remain-dominant-force-in-global-LNG-i

Malaysia: Malaysia, the world’s 3rd largest LNG exporter, to export world's first LNG from floating production unit

*http://www.businesstimes.com.sg/energy-commodities/malaysias-petronas-achieves-first-gas-for-floating-lng-facility

Mexico: 18 of the 90 cargoes that left the US since February 2016 have been destined for Mexico

*https://www.forbes.com/sites/judeclemente/2017/04/05/mexico-is-also-importing-u-s-liquefied-natural-gas/#60ef161d4e29

Morocco: Morocco’s delay to LNG terminal tender may push the project’s startup beyond 2021 and full completion until after 2025. *http://interfaxenergy.com/gasdaily/article/24225/domestic-gas-may-sway-morocco-on-lng-project

Mozambique: LNG facility is scheduled for operation by 2018. Japan, Korea, India and China bought significant stakes in Mozambique oil lease holdings

*http://interfaxenergy.com/gasdaily/article/23111/government-approves-key-moz-lng-agreements

Namibia: Xaris Energy’s 250 MW LNG-to-power project in Namibia is “still under discussion” with the government

*http://interfaxenergy.com/gasdaily/article/24486/more-delays-still-no-ppas-for-namibian-gas-to-power

Netherlands: Lithuania and NL interested in cooperating on the use of LNG in public transport highlighting the importance of securing low-carbon energy economy.


Norway: Norway sees Australia as top target market for LNG imports


Nigeria: Talks with potential buyers on new contracts for gas supplies from its first three production units at its liquefied natural gas (LNG) terminal

*http://timesofindia.indiatimes.com/business/international-business/nigeria-lng-starts-talking-to-buyers-on-new-contracts/articleshow/58045106.cms

Oman: Produced 8.5 million tonnes of liquefied natural gas (LNG) in 2016 with capacity utilization of 73.5 per cent. *http://timesofoman.com/article/106221/Business/Oman-LNG%27s-production-hits-85-million-tonnes

Pakistan: Russia wants to build a North South LNG pipeline with Pakistan to link LNG terminal in Karachi with Lahore. US is putting pressure on Pakistan.

*https://dnd.com.pk/putin-visit-to-pakistan/127315

Panama: Panama Canal to See 550 U.S. LNG Tankers a Year After Expansion

*https://www.bloomberg.com/news/articles/2016-07-01/panama-canal-to-see-550-u-s-lng-tankers-a-year-after-expansion

Papa New Guinea: Unrest poses threat to LNG investment

*http://www.emtv.com.pg/business/2017/03/unrest-poses-threat-to-investment-in-papua-new-guinea-says-report/

Peru: The expansion of the Panama Canal allowing it to be used by standard LNG tankers means Peru’s shipping distance to Britain is now comparable to Qatar’s.

*https://staticseekingalpha3.a.ssl.fastly.net/uploads/sa_presentations/4/5004/slides/17.jpg?1486062528

Poland: Poland Trucking LNG to Estonia via tank trucks.

*https://staticseekingalpha3.a.ssl.fastly.net/uploads/sa_presentations/4/5004/slides/17.jpg?1486062528

Portugal: A rush for LNG in Portugal is similar to nearby Spain and southern France, where hub prices spiked on spot products, on soaring demand and reduced supply.

*https://www.icis.com/resources/news/2017/02/16/10079767/portugal-prepares-for-record-sixth-lng-cargo-in-february/

Qatar: Britain's exit from the European Union is an opportunity to boost supplies of liquefied natural gas to the world's fifth-largest economy


Romania: The Interconnector Azerbaijan-Georgia-Romania-Hungary (AGRI) is expected to transport Azeri LNG from Georgia, across the Black Sea, to a Romanian LNG terminal.

*http://www.azernews.az/business/110810.html

Russia: Putin Says Russia Will Become World’s Top LNG Producer

* http://finance.yahoo.com/news/putin-says-russia-become-world-200000465.html

Singapore: More Japanese trading houses and international resource developers are using Singapore as a hub for Asian LNG operations.

* http://asia.nikkei.com/Business/Trends/Singapore-realizing-LNG-hub-dreams-as-trading-houses-file-in

Senegal: BP plans LNG hub off Senegal, Mauritania. The partners plan to process and transport gas offshore fields to a nearshore LNG facility to be completed by 2018

* http://asia.nikkei.com/Business/Trends/Singapore-realizing-LNG-hub-dreams-as-trading-houses-file-in

South Africa: South Africa will invest $3.7 billion to build infrastructure for a gas-to-power program aimed at easing the country’s dependence on coal.

* https://www.bloomberg.com/news/articles/2016-10-03/south-africa-s-richards-bay-coega-to-be-part-of-gas-to-power-itufjvlh

South Korea: World’s 2nd Largest LNG Importer to Boost Consumption. LNG’s share of the power supply to grow to 37% by 2030 to support renewables growth

* http://oilprice.com/Latest-Energy-News/World-News/Worlds-2nd-Largest-LNG-Importer-to-Boost-Consumption.html

Spain: The largest re-exporter of the fuel, is hanging onto its LNG cargoes. Spanish gas demand rose driven by colder weather and lower wind and hydro generation

* https://www.bloomberg.com/news/articles/2017-01-10/europe-left-in-the-cold-as-frost-triggers-global-hunt-for-lng

Taiwan: Taiwan uses LNG to fuel its gas-powered power plants. The world’s fifth largest LNG buyer, boosted its imports by 2.7 percent in 2016.

http://www.lngworldnews.com/taiwan-ups-september-lng-imports/

Tanzania: LNG project stalls as uncertainty rises. Despite high-profile efforts to accelerate the development of Tanzania’s LNG assets, there is no clear timeline.

https://www.fairobserver.com/region/africa/tanzania-africa-news-lng-industry-33035/

Thailand: Southeast Asia’s second-largest economy will boost LNG imports by more than 70 percent this year.

*https://www.marinelink.com/news/thailand-imports-boosts423539

Trinidad and Tobago: LNG brings in the least amount of revenue for the Government compared to the industries in the petrochemical sector.

Turkey: Turkey’s new floating storage and regasification unit (FSRU) will alleviate strain on seasonal imports and enables the country to diversify its sources of supply

http://www.lngworldshipping.com/news/view,turkeys-floating-lng-imports-deliver-cheaper-gas-and-energy-security_46783.htm

UAE: UAE will review every proposed LNG power project as a project that’s not subsidized. UAE to switch half its power needs to clean energy by 2050.

https://www.lngindustry.com/liquefaction/31032017/uae-to-review-every-proposed-lng-power-project/

UK: Natural gas shortages aren’t an immediate risk because liquefied natural gas import terminals are using about a third of their capacity.

https://www.bloomberg.com/news/articles/2017-04-12/u-k-post-brexit-economy-depends-on-energy-market-that-s-a-mess

USA: After six decades, U.S. set to turn natural gas exporter amid LNG boom

http://www.reuters.com/article/us-usa-natgas-lng-analysis-idUSKBN1700F1

Vietnam: Vietnam eyes 2023 start date for LNG imports. LNG imports will help Vietnam to meet growing electricity demand.

http://www.lngworldshipping.com/news/view,vietnam-eyes-2023-start-date-for-lng-imports_45354.htm

Yemen: Yemen LNG is unlikely to restart operations imminently despite claims by the government that IOCs will return to areas near gas production and export facilities.

*http://interfaxenergy.com/gasdaily/article/25113/yemen-lng-unlikely-to-restart-anytime-soon

global lng import export snapshot april 2017

Economy & Finance