Webcasts

Energy Web Atlas

Asia drives global LNG demand. Robust demand for cleaner-burning fuel in Asian countries amid rapid population growth, improvements to living standards, and general economic advancement provide a context for sustained LNG import capacity investment.

LNG exporters to Asia have a slew of challenges to contend with, however, including the prospects for project sanction delays and other demand-side factors impacted by global health scares, relative economic underperformance, and trade disputes and wars. The continued drop in global natural gas prices continues to constrain prospects.

Asian LNG prices reached extremely low levels in the 1Q of 2020 amid a glut of global natural gas production and the start of additional global export capacity. Less severe winters, increased demand-side efficiencies, and potential new LNG capacity could continue to depress price levels. The prospect of ever-increasing Asian LNG demand prompted massive capacity investment in both upstream developments and midstream infrastructure. The factors may come as a boon to demand centers, but operators with oil-linked contracts are at a disadvantage.

This webcast describes the key drivers, challenges, and impacts of Asian LNG capacity investment to 2025 and an examination of the implications for a variety of far-reaching factors. We look at the effects of potential oil-linked vs. hub-based pricing in the Asian project economics context, highlight critical factors supporting or inhibiting project progression, and provide a five-year outlook on anticipated capacity expansion for key Asian LNG import nations, including China, Japan, India, and South Korea. 

Energy Web Atlas

Demand for Europe’s natural gas transmission infrastructure is increasingly in focus as the continent’s natural gas dependency continues to reach all-time highs. Amid steep year-over-year declines in natural gas production, the continent is increasingly reliant on LNG imports and international pipelines to supply key regions. But key restraints remain in areas where import capacity has insufficient access to growing demand centers. Additionally, emerging demand factors and remote upstream developments amid a push for lower carbon fuels provides a context for midstream infrastructure investment. 

We examine the implications for managing the supply of natural gas through Europe to consumers. We examine capital investments, potential, and identify areas where a conflux of issues may lead to a gas transmission system shortfall. We examine regional natural gas transmission capacity and import facility capacities compared to the prospects of domestic supply and growing demand centers. Which areas require additional investment by midstream operators and what are the implications of this for the broader gas dynamics of Europe.

Hydrocarbon Processing | Energy Web Atlas

Over the past several years, the world has witnessed significant downstream capacity growth in all sectors of the downstream hydrocarbon processing industry (HPI). To satisfy increasing demand for refined fuels, petrochemicals and natural gas, every region is investing to increase downstream processing capacity. Although the Asia-Pacific, Middle East and US regions will be the leaders in capacity growth, other regions have announced capital-intensive projects to meet future demand. With more than $1.8 T in announced projects globally, it is imperative that HPI companies receive the most up-to-date and valid information on market trends, and the future development of the downstream processing industry.

During this live webcast, Lee Nichols and Thad Pittman will provide a mid-year update on capital projects around the world, as well as major economic, environmental and political market trends that are shaping and influencing the industry in the near-term.

Energy Web Atlas

LNG supply looks set to have a record year in 2019 on two fronts – production growth and the number of financial investment decisions (FIDs) expected to be taken.

The global LNG market is currently rebalancing, with supply outstripping demand, yet more than 60m t/y of export capacity is likely to take FID. Last year only 21m t/y was sanctioned, and this is closer even to 2005, when 45m t/y was sanctioned under different circumstances.

FID could be taken in a number of countries, including some that already have a stronghold in the LNG market. Qatar already has a capacity of 77m t/y and would be looking to regain a dominant position by sanctioning up to 31.2m t/y (from 4 trains) on its North Field Expansion. Not to be outdone, the United States has up to 10 projects that could be sanctioned. The most likely appear to be Ventures Calcasieu Pass, Golden Pass and Sabine Pass T6. After the successful start up of Yamal LNG over the past couple of years, Russia’s 19.8m t/y Arctic LNG-2 project is also looking for sanction. It’s not just the established exporters though, as newcomer Mozambique has two potential projects for sanction totalling 18m t/y, which would position it firmly in the top 10. Other potential countries include Canada, Nigeria and Papua New Guinea.

Using the Energy Web Atlas we can examine the current status of the global LNG network, as well as determine the future outlook. With a detailed examination of which projects will be built, where and by whom, we can look for regional trends and ascertain the areas that have the most complete coverage, as well as those that are lacking, leaving their gas discoveries potentially stranded.

Energy Web Atlas

Will Asia provide a market for significant US exports?

LNG exports are set to be dominated by the US, Australia and Qatar. In the future, it is expected that they will account for over half of global LNG exports by 2040. The US currently has an export capacity of 25m t/y and is heading towards 100m t/y in the short term.

Asia and Europe together will account for the vast majority of LNG demand by 2040. With the increasing accessibility and competitiveness of gas associated with LNG, existing markets (such as China and India) will expand and new ones (such as Pakistan and Bangladesh) will be developed. Asia currently has an import capacity of 440m t/y and is heading towards 580m t/y in the short term.

So will Asia provide a market for significant volumes of US LNG?

By looking at current Asian imports by exporter, the benefits of proximity, and therefore lower shipping costs, would appear to suggest that there is little benefit in importing LNG from the US. However, both LNG sellers and LNG buyers see value in diversifying their portfolios, so significant quantities of US LNG are likely to be exported to Asia. Alaska LNG’s planned 20m t/y project for 2025 is specifically targeting Asian markets.

Using the Energy Web Atlas we can examine the current status of the global LNG network, as well as determine the future outlook. With a detailed examination of which projects will be built, where and by whom, we can look for regional trends and ascertain the areas that have the most complete coverage, as well as those that are lacking, leaving their gas discoveries potentially stranded.