12 Aug How Liquefied Natural Gas Will Transform Global Energy Markets
How will natural gas, liquefied natural gas, and LNG change the way people think about fuel? How will it impact global energy markets? Will it alter the lifestyles of consumers in developed nations? And what might it mean for the future of developing countries? This article will provide an introduction to liquefied natural gas (LNG), discussing what it is, how it’s produced, and why it’s so important to the world’s energy futures.
Demand from the developing world
According to the International Energy Agency, demand for natural gas is expected to grow by more than 50% by 2030. Much of this demand will come from the developing world, where populations are growing and incomes are rising. This will create a huge market for LNG, which can be transported by ship and used to generate electricity. The global market for LNG will increase substantially in the coming years, with an estimated 170 new projects under development at present. The most notable LNG export project under construction is Cove Point in Maryland, USA.
A new plant there could produce up to 1 billion cubic feet per day (cfd) of liquefied natural gas when completed in 2016. But current levels of U.S. imports will require LNG Project Management expertise, as exports cannot reach that level until 2020 at the earliest.
The Middle East, Russia and China
The world’s three largest energy consumers – the United States, China and India – are all turning to liquefied natural gas (LNG) to meet their growing energy needs. LNG is natural gas that has been cooled to -260°F, making it a liquid. This process makes it easier and cheaper to transport natural gas over long distances by ship.
U.S. shale gas production is on the rise
According to the U.S. Energy Information Administration, production of shale gas in the United States has increased rapidly over the past decade, from 2.7 trillion cubic feet in 2010 to 10.3 trillion cubic feet in 2018. This increase is largely due to the development of new hydraulic fracturing and horizontal drilling technologies that have made it possible to extract gas from shale formations that were previously uneconomical to develop.
Supply in North America
The North American shale gas boom has led to a surge in LNG exports in recent years, with the United States becoming a net exporter of LNG in 2017. This is expected to continue in the coming years as more
export terminals come online. The increased supply of LNG is already having an impact on global energy markets, with prices falling and demand rising.
It’s an exciting time for global energy markets
Thanks to the shale revolution, the United States is now the world’s largest producer of natural gas. And as demand for natural gas continues to grow around the world, so too does the need for liquefied natural gas (LNG). According to the International Energy Agency, LNG will account for a quarter of global energy needs by 2040. A big reason why: LNG has a far smaller carbon footprint than other fossil fuels, and its use in power generation reduces emissions by up to 80%. In fact, just last year—thanks largely to an increased focus on environmental protection—the U.S.