Available Exclusively to NGW Subscribers:
Volume 2, Issue 5 - July 31, 2020
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LNG Condensed brings you independent analysis of the LNG world's rapidly evolving markets.
Covering the length of the LNG value chain and the breadth of this global industry, it will inform, provoke and enrich your decision making. Published monthly, LNG Condensed provides original content on industry developments by the leading editorial team from Natural Gas World.
LNG Condensed is your magazine for the fuel of the future.
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In this Issue:
Editorial: Gas is the pragmatic element of a non-ideal but achievable energy transition
It would be great if the world could move steadily and surely towards 100% renewable energy systems with no further additions of fossil fuel use.
LNG and the decarbonisation of European gas
Europe’s new hydrogen strategies, if successfully implemented, imply a sharp reduction in European natural gas demand, but Europe’s appetite for LNG could prove resilient at least until 2040. The hydrogen strategies embody large uncertainties, in particular the balance between ‘green’ and ‘blue’ hydrogen production. While the former depends on a rapid scale-up of both electrolyser capacity and renewable energy generation, the latter is dependent on the realisation of carbon capture and storage.
Big finds will boost Middle Eastern LNG exports
The United Arab Emirates’ role in global gas markets could change markedly as a result of two big discoveries earlier this year: the Mahani discovery onshore Sharjah and the Jebel Ali fi eld on the border of Abu Dhabi and Dubai. The latter, in particular, will have profound implications for the balance of the country’s gas imports and exports. It could hasten the demise of Qatari gas exports to the UAE, creating more feedstock for Qatar’s own LNG capacity expansion, while also providing suffi cient gas to justify the construction of new LNG export capacity in the UAE itself.
LNG: It’s all about Asia
Asia will increase its already dominant position on the buy side of the international LNG market over the next fi ve years, according to a new report published by the International Energy Agency. One of the key determinants of how much its share of global demand increases will be the future level of Asian gas production. This is likely to be held in check by unencouraging domestic regulation and a lack of large conventional gas prospects, although coal gas is a potential threat, if environmental considerations are overridden.
Country Focus: Italy
Gas burn in Italy should rise as a result of the 2025 phase out of coal-fired generation, which last year still accounted for just over 10% of electricity supply. Moreover, the country’s expansion of renewable energy sources is decidedly slow. However, with the longin-gestation Trans-Adriatic Pipeline soon to come on-stream, Italy’s gas import mix remains uncertain. Its LNG terminals last year ramped up to near full capacity, presenting a fundamental obstacle to maximising the opportunity presented by cheap LNG.
Project Spotlight: Barcarena FSRU, Brazil
LNG from the Barcarena FSRU will displace fuel oil at one of world’s largest alumina plants in Para state, northern Brazil, resulting in big cuts in greenhouse gas emissions.
Technology: Washington allows LNG transport by rail
The US Department of Transportation sanctioned the transport of LNG by rail in June, after a report by its Pipeline and Hazardous Materials Safety Administration (PHMSA) described the practice as “safe”.