Global LNG as a Fuel Market - Growth, Trends and Forecasts (2017 - 2022)

Published - Jan 2017 | Category - Energy and Power | No. of Pages - 125 | Published By - Mordor Intelligence

Report Highlights

The Global LNG market is growing at XX% CAGR and is expected to reach USD XXX by 2022 from USD XXX in 2015.

The natural gas market is undergoing rapid transition. The steady collapse of international natural gas prices with significant increase in gas production has been one of the most important, but least reported commodities in the recent years.   For more than four years with the tight LNG market and long term LNG import Prices. The weak performance of the LNG prices in recent months in the global market is expected to stay till the end of 2015. After a limited growth in the LNG Supply in 2014, we will start to see a new wave of fresh supply coming to the market. The plunge in the oil prices impacted the long term oil indexed contract prices, which also impacted the LNG spot prices. The really concerning thing from LNG shippers is that the supply is about to surge in the key markets like japan, which is failing in its consumption, as it is one of the biggest users, reported that its demand for LNG is falling faster than anticipated. This resulted in the decrease of spot purchase, which was one of the major drivers for the LNG market in the past years.

Technological advances such as directional well drilling and hydraulic fracturing have considerably increased the gas production in North America and Australia, where abundant gas supplies have pushed down the gas prices and is creating a challenge for the companies. With the expansion of LNG trade through intercontinental tankers, the gas market became more competitive.

 LNG achieves a higher reduction in volume than the compressed natural gas so that the energy density is 2.4 times greater than that of CNG and 60% of that of Diesel fuels. This makes LNG most efficient to transport to long distances, where pipelines does not exist. LNG is transported by a specially designed cryogenic sea vessels. These cryogenic transportation vessels are relatively high in the cost of production, which hindered the widespread use in commercial applications.   Despite the drawbacks in demand, increase in production, high cost of transportation, considering on energy basis the LNG production is expected to hit 10% of the global crude production by 2022.

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