LNG

European liquefied natural gas price benchmarks and Asian spot cargo margins dropped to under $1 per million British thermal units as over-supply compared with the past two-and-a-half years and mild weather offset global shipping security and navigation issues from Suez to Panama.

The past 12 months have been the most turbulent and testing year ever for the energy industry, in particular the natural gas sector and the markets, according to the International Gas Union President Li Yalan.

The IGU President also noted in the December issue of the IGU’s monthly publication that there had also been hard times in many other sectors of the economy and for populations in general.

“The global energy crisis continues and energy markets are rocked by conflict, high and volatile prices, low supply and demand destruction,” stated Li, who was nominated as head of the IGU from the Beijing Gas Group.

“Energy consumers are directly exposed to the energy crisis, with people struggling to pay their bills due to high energy cost,” she said.

“Many had to turn down their heat this winter, several regions have had to endure power shortages and others are walking through darker streets or working remotely to conserve energy,” she added.

Coal use

“Many factories were forced to stop producing, or close down faced with unaffordable energy and deficiency in raw materials. To navigate through the crisis, many countries had to prioritize energy security over energy transition as a result we see a growing number of countries adding coal-power capacity, and increased use of coal - the
most emitting fossil fuel - all across the world, rich and developing alike,” she explained.

The IGU President emphasized that there was an upside as there were positive signals that investments were increasing for natural gas projects and for renewables and that these trends needed to continue for the global energy balance to be restored.

“As we wrap up this year and reflect on its many stresses, I hope that a key lesson that can be learned from it is that energy systems cannot be changed overnight,” noted Li.

“In the recent years leading up to this crisis, energy security became forgotten and long-term planning for secure and reliable supply was seemingly forgotten with it,” she explained.

“This crisis reminds us that energy security should be brought back in balance with economic and environmental policy considerations,” Li declared.

LI added that it was imperative that the world arrives at a “real plan” for an achievable transition toward a clean, secure and affordable energy system.

“Most importantly, it will require an honest dialogue between all key players, including the gas industry,” she said.

Indian liquefied natural gas imports last month dropped by more than 17 percent amid a 40 percent surge in cargo prices year-on-year, while domestic natural gas production more than offset the fall in imports.

June 18 (LNGJ) - The Chief Executive of India’s Petronet LNG, Akshay Kumar Singh, told a conference that the nation needed more regasification and other infrastructure to meet increasing natural gas demand. He noted that Petronet, operator of the largest terminal at Dahej north of Mumbai and the southwest Kochi facility in Kerala, accounted for a good proportion of the existing 42.5 million tonnes per annum of import capacity of the six operating terminals.

   Singh said India needed to increase its LNG import capacity to 155 MTPA, considering that utilization would be 80 percent, to supply the growing market. “LNG will play a major role in catering to this incremental demand and the share of LNG in natural gas consumption is likely to increase from the present 55 percent to 70 percent in the coming 9-10 years,” stated CEO Singh.

Indian Prime Minister Narendra Modi will formally open the long-awaited 450-kilometres natural gas pipeline from the Kochi LNG import terminal in the southwest state of Kerala to the port city of Mangaluru in the state of Karnataka further north.