The price of Australia’s current and future LNG production is linked to the price of crude oil, so fluctuations in the oil price will affect the terms of trade and the nation’s whole economy, now so reliant on resource income.
The global LNG industry is relatively young, just celebrating its 50-year anniversary in October 2014. Thus it is quite natural for it to continue changing its shape and evolving.
World natural gas demand is expected to grow by 1.8 percent per annum through to 2035 with liquefied natural gas in demand in terms of inter-regional flows.
BG Group’s new Chief Executive Helge Lund formally started work a month ago and he has work on his hands to get the top liquefied natural gas portfolio player back on track.
Egypt is suffering from severe natural gas supply shortages that even liquefied natural gas imports at market prices will not alleviate the problem for several years, while its planned imports of LNG could be delayed by six months until the third quarter of 2015.
The production and transport of liquefied natural gas is becoming increasingly challenging for ship owners and operators worldwide: stricter emissions and safety requirements lead to high operating costs.