World LNG to 2020

Released on = April 14, 2007, 1:28 am

Press Release Author = Bharat Book Bureau

Industry = Marketing

Press Release Summary = The world LNG industry is currently going through a period
of massive expansion and change, featuring

Press Release Body = The world LNG industry is currently going through a period of
massive expansion and change, featuring:

Large-scale demand growth

Emergence of new supply sources

Emergence of new import markets

Increasing contract flexibility

Higher levels of spot market and short-term contracts

Speculative LNG carrier newbuilding orders

Changes in vessel size and cargo containment/propulsion systems.

With trade volumes forecast to increase by a massive 71% by 2010 and 172% by 2020,
the LNG sector is in a period of large-scale expansion. This Report examines the
current and historical development of LNG trade, detailing developments by major
importer and exporter. By examining the prospects for individual LNG suppliers and
import markets under alternative forward scenarios, detailed analysis is included on
future prospects for LNG trade volume and structure through to 2020. This is
translated into the projected number of extra LNG carriers required throughout the
future period.

The analysis is widened through consideration of likely developments in other
aspects of LNG shipping - including vessel technical developments, shipyard
activity, LNG spot market development, and the potential for LNG alternatives such
as CNG. Whilst the overall outlook is one of growth, the Report also includes
analysis of some 'Worst Case' scenarios - providing an indication of the potential
full market implications of sudden disruptions to LNG supply or to LNG imports.

World LNG to 2020 therefore provides invaluable independent analysis on the
development of LNG trade and shipping to 2020 - a period set to witness massive
expansion and change throughout the LNG sector. It represents the most up to date
and comprehensive examination of LNG sector prospects, and is essential reading for
all parties with an interest in this sector.

Contents of World LNG to 2020: Prospects for Trade & Shipping :

Section 1: Introduction & Executive Summary

Includes an overview of the Report's aims, as well as a summary of the methodology
underlying the analyses. This Section also includes a summary of the most
significant points and conclusions drawn from the main body of the Report. They are
presented in the order of the corresponding Sections for ease of reference.

Section 2: LNG Fleet Developments 1970-2004

The world fleet of LNG carriers has expanded from 8 vessels in 1970 to the current
total of 152, and the growth in the capacity of the fleet is currently at the
fastest rate ever, with a total of 59 vessels on order - representing approximately
45% of existing LNG capacity. This Section examines fleet developments, the current
age profile and a detailed breakdown of the current orderbook. As well as analysing
the involvement of individual shipyards in recent and future LNG carrier
construction, the Section also focuses attention on fleet ownership, vessel
newbuilding prices, vessel size and cargo containment systems, providing an
invaluable insight into recent and current trends.

Section 3: LNG Supply & Demand 1970-2004

In recent years, there has been a large-scale shift in favour of gas in national
energy profiles - this Section examines the development of natural gas within
primary energy demand, and highlights the associated changes in regional gas
consumption and LNG imports. The Section also includes a summary of the main
features emerging for each of the world's main LNG import and export markets in
turn, including capacity, contract volumes, and import/export patterns.

Section 4: LNG - Trade 1970-2003

The aggregate level of world LNG trade has continued to expand in recent years -
with over 10% growth in 2000 followed by 5-6% annual growth in subsequent years.
Attention in this Section is centred on detailing trade patterns and volumes, with
analysis of detailed trade matrices and individual trade routes. With shipping
demand a function of trade volume and haul length, the evolution of the demand for
LNG carriers is analysed in full, including discussion of ship size deployment.

Section 5: LNG Import Markets to 2020

The profile of LNG import markets is changing dramatically - linked to a strong
trend in favour of gas within national energy profiles, low LNG import prices, and
the deregulation of energy/gas markets in Europe and Asia. The net effect is for
demand expansion in existing import markets and the emergence of a number of new
sources of LNG demand. With import demand forecast to increase by 172% in the period
to 2020, this Section details the expected development of annual import volumes for
existing and new individual markets. The latter include large-scale import
development for markets in Europe (especially the UK), Latin America and Asia
(especially India and China). A set of alternative forward scenarios is developed
for each market, detailing the expected level of annual imports in each case.

Section 6: LNG Exports to 2020

This Section details LNG export prospects by individual country - in terms of their
forecast development as well as within the alternative forward scenarios throughout
the study period to 2020. Evolving export capacity is analysed, as is contract
development. There are plans for the development of LNG capacity in a number of new
exporting countries - including Iran, Yemen, Bolivia, Venezuela, Peru, Egypt,
Angola, Norway and Russia - these are discussed in terms of their likely realisation
and associated volumes.

Section 7: LNG Trade & Shipping Demand to 2020

This Section details the forecast development of LNG trade patterns/volumes and
shipping demand throughput the study period. It also analyses the projected
development profiles in the alternative forward scenarios. This includes analyses
for trade flows and LNG carrier employment - in terms of both exporting and
importing countries. With shipping demand set to expand even faster than trade
volumes due to evolving trade patterns (by over 190% by 2020), this Section provides
a detailed examination of the areas of most significance for LNG employment growth.

Section 8: LNG Fleet & Shipping Requirements to 2020

The implications of the expected forward development of trade volumes and patterns
for LNG carrier demand are examined. The prospects for vessel scrapping are also
considered, as too the impact of deliveries from the massive volume of LNG carriers
currently on order at world shipyards. The resultant demand/supply conditions facing
the LNG market over the near-term are evaluated, as too the requirements for extra
LNG vessels throughout the study period. The Section also includes analysis and
discussion on the main features of LNG shipping likely to emerge, including larger
vessels; spot market employment; onboard liquefaction; floating terminals;
propulsion systems; alternative containment systems; Compressed Natural Gas (CNG)
trade is also investigated as an alternative to LNG. Also included here is an
investigation into some 'Worst Case' scenarios for the LNG trade - including the
disruption to supply from a leading exporter (resulting for example from a sudden
plant shutdown), and the temporary/permanent cessation of purchases by a leading
importer (due, for example, to a terrorist incident or threat).

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