Tag Archives: LNG

LNG ante portas: Growing LNG penetration in Europe

20 Oct

In the previous post we highlighted that a significant oversupply is building up in international LNG markets, and suppliers have to find new markets as Asia seems to get satiated with LNG. In the longer run, we expect new markets to emerge while the deployment of LNG in transportation will become more widespread. However, in the next few years LNG can be sold only at those markets where infrastructure has already been installed to regasify and distribute LNG to consumers. Therefore, many free LNG cargos will head towards the European markets. In this post we examine to what extent LNG will be able to penetrate the competitive European gas markets and how market conditions will change as a result of the intensified international competition. […]

Head hunting for LNG traders is on

5 Oct

The birth of liquid international LNG markets

In the second post of our LNG series we focus on the restructuring of LNG markets and how they transform from a rigid, long-term structure dominated by a few incumbents into a flexible and vivid market place.

This restructuring opens doors for new entrants. There will be new buyers without rigid long-term commitments and new traders with less market power. They will distribute LNG towards new markets, even to Hungary. Following our slightly technical post today, next week we will continue our LNG series with focusing on how LNG will penetrate the European markets. […]

Prepare for the global gas tsunami

23 Sep

Global gas markets will be transformed in the next years, and this will affect Europe as well. This transformation will start on the liquefied natural gas (LNG) market and this post focuses on how the market has functioned so far and what events might turn it upside down. […]

Will the cheap US gas be exported?

19 Jun

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The US chemical industry would rather export the natural gas in the form of plastics, the greens would not export it at all, and the foreign policy lobby regards gas exports as a tactical weapon against the Russians. The jury on exports is still out, literally.

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The incredible shrinking Nabucco

6 Feb

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A pipeline project is made of steel and political stability along its route. Both of these things got scarcer and more expensive in the past 10 years, while the alternatives became more abundant. Nabucco seemed to be a good idea 10 years ago. But then the world changed.

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LNG-trip through the Arctic, or the effect of climate change on the energy industry

26 Nov

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For the first time in history, Gazprom is transporting liquefied natural gas (LNG) to Japan via the Arctic, and even endeavored to make the trip in November. This route is three weeks shorter than the currently used roundabout to the south, and there are no fees to be paid at the Suez Canal. All this has been made possible by climate change, more specifically the melting and thinning of the Arctic ice layer.

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The Natural Gas Revolution II: The economic consequences

22 Jun

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Gas is more abundant and cheaper than oil, and possibly even than coal. It will spread in heating and electricity production. Whether the same happens in transportation is more questionable – electricity may push out oil first. But if not, we may have a “methane economy” in a few decades. Whatever the outcome, the important lesson is that you will never have to face “Peak Energy” if you can face expensive energy for a while. High market prices are a powerful tool to incentivize the search for alternatives. 

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The unconventional gas revolution and its consequences I.

17 May

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Currently natural gas in the US is cheaper than the subsidized domestic gas price level in Russia. Even if this is unlikely to last, gas will be cheap, significantly cheaper than oil, eventually everywhere. This is going to be a truly enermous global supply shock.  But the US will enjoy a cost advantage for years.

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