Evolution Of LNG Markets: Emerging Trends In Asia

The LNG industry has come a long way. Today’s LNG market is evolving and dynamic, with characteristics that contrast starkly with the traditional LNG market that existed before.

Evolution of LNG Markets

“Sellers are looking for sustainable prices, receiving and distributing maintenance, buyer quality, strategic value, downstream market and future investable demand,” Dan Rogers, Senior Partner at King & Spalding LLP, said at the World LNG Series Asia Pacific Summit.

Of the many projects that are discussed, Rogers suggested the merits of the “modular” mid- scale LNG projects. Modular LNG consists of the gas pre-treatment facilities, cold box and compressor, LNG storage tank, and berthing and loading facilities. These smaller scale LNG facilitates development of more marginal fields, lowers capital costs and ability to defer investment significantly, and requires minimal re-engineering because of its uniform “off the shelf” design. Furthermore, it requires “simpler” technology that makes for easier plant operation. More importantly, it can be used for both onshore and offshore applications.

Asia will account for 70% of LNG imports by 2015.