Trends and Markets in Liquefied Natural Gas
"It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the s...
| Main Author: | |
|---|---|
| Format: | Viewpoint |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/1999/04/2529898/trends-markets-liquefied-natural-gas http://hdl.handle.net/10986/11494 |
| Summary: | "It was the best of times, it was
the worst of times, it was the age of wisdom, it was the age
of foolishness, it was the epoch of belief, it was the epoch
of incredulity, it was the season of Light, it was the
season of Darkness, it was the spring of hope, it was the
winter of despair, we had everything before us, we had
nothing before us . . ." Quoting the opening of Charles
Dickens's Tale of Two Cities in connection with the
current state of the liquefied natural gas (LNG) industry
may, if anything, be overly optimistic, beset as the
industry is with low prices and stuttering demand in its
Asian stronghold. But it is hard to resist calling on these
contrasts to characterize the LNG industry, for despite its
problems, there are glimmerings of change that could
profoundly improve its lot. LNG is essentially a niche fuel.
Liquefying and shipping gas is expensive, so the LNG route
is attractive for developers only where there is no local
market or where capacity in the local market is insufficient
to take all the available local supplies. LNG requires large
investments by the buyers in terminal and regasification
facilities, so it generally flourishes only where there is a
shortage of indigenous gas supplies and where competition
from pipeline gas is limited. In bulk, LNG is suitable for
transport only by sea, so its use in landlocked areas is
confined to small peak shaving plants or isolated locations
such as central Australia. |
|---|