LNG

The France-based International Group of Liquefied Natural Gas Importers (GIIGNL) said the LNG industry was making progress in adopting a comprehensive framework developed by GIIGNL on certifying the offsetting of carbon content in LNG with a trial cargo sent from Australia to Taiwan.

The France-based International Group of Liquefied Natural Gas Importers (GIIGNL) has issued its annual report with key export and import statistics and noted that 2022 would see a ‘‘paradigm shift” in the market with government and institutions getting involved after the Russian invasion of Ukraine.

“Price volatility was exacerbated in February 2022 by the Russia-Ukraine conflict, and the current European energy crisis proves to be a stark reminder of LNG’s vital role in ensuring energy security and economic stability,” said Jean Abiteboul, GIIGNL President in his introduction to the report.

“Governments and public institutions are becoming increasingly involved in the LNG business, and we will monitor the consequences of this paradigm shift over the course of the coming year,” he added.

Global regasification capacity rose last year by 46 million tonnes per annum to reach 993 MTPA as four new large-scale terminals were brought in operation in Brazil, Croatia, Indonesia and Kuwait and five expansion programmes were completed, four of which are in China and one in Japan.

“At least six new markets have started or are scheduled to join the sector as importers in 2022, including Ghana, Hong Kong, El Salvador, the Philippines, Senegal and Vietnam,” said the report.

“In the meantime, LNG production has been struggling to keep pace with demand, which sent spot LNG prices upwards,” it added.

The GIIGLN constitutes a forum for exchange of information and experience among its 90 members and they handle more than 90 percent of LNG imports worldwide.

The membership the GIIGLN comes from 27 countries and the body also aims to share experiences to enhance safety, reliability, efficiency and sustainability of LNG import activities and in particular the operation of regasification terminals.

Keeping pace

“During 2021, LNG imports returned to robust growth, reaching 372.3 million tonnes, a 4.5 percent increase over 2020. Asia remained the main demand center for LNG, growing by 7.1 percent,” it said.

The report added that LNG production has been struggling to keep pace with demand, which sent spot LNG prices upwards.

“While 7.4 MTPA of new capacity came onstream, 5 MTPA of which in the United States, global LNG exports were affected by unscheduled maintenance and shortfalls in feed gas,” the report added.

“Increased output from the US, Egypt, Malaysia and Russia was partly offset by lower exports from Angola, Indonesia, Nigeria, Norway, Peru and Trinidad,” said the GIIGNL.

The report said that in 2021, two important final investment decisions were taken for the North Field East expansion project in Qatar, which will add 33 MTPA of liquefaction capacity from 2025, and Pluto LNG Train 2 in Australia for 5 MTPA.

“By 2025, more than 120 MTPA of new liquefaction capacity will progressively come online, which should partly relieve tensions in the LNG market,” stated the report.

With 68 new vessels delivered during 2021, the report confirmed that the LNG fleet reached 700 vessels, including 48 floating storage and regasification units (FSRUs) and 31 LNG bunkering vessels, representing a 9 percent increase in cargo capacity.

“Freight rates remained very strong throughout the year and the order book at year-end was remarkably high, with 196 units to be delivered by 2025,” said the report.

The France-based International Group of Liquefied Natural Gas Importers (GIIGNL) has issued its annual report with key export and import statistics showing surges in spot LNG deals and in deliveries on short-term contracts.

Nov 25 (LNGJ) - The France-based International Group of Liquefied Natural Gas Importers (GIIGNL), which has 86 members in 27 countries, has promoted three companies to its Executive Committee at its annual meeting. They are China National Offshore Oil Corp (CNOOC) Gas, Power and Trading, CPC Corp. of Taiwan and Indian importer Petronet LNG. “The increase with three new members from Asia reflects the growing importance of LNG imports in the region,” said the group.

The France-based International Group of Liquefied Natural Gas Importers (GIIGNL) has issued its annual report with landmark statistics, including more than 10,000 cargoes delivered without incident and the global LNG carrier fleet passing the 600-vessel mark.

“LNG flows experienced a shift in patterns,” said GIIGNL President Jean-Marie Dauger in his executive overview of the 2020 publication.

“Northeast Asian demand growth moderated due to economic slowdown, milder weather and competition from nuclear and coal-fired power generation, while most of additional LNG volumes were absorbed into Europe which played a balancing role thanks to its abundant infrastructure and well-connected gas market,” he explained.

The GIIGLN constitutes a forum for exchange of information and experience among its 88 members with the aim of enhancing the safety, reliability, efficiency and sustainability of LNG import activities and in particular the operation of regasification terminals.

The GIIGNL said that while no new country joined the ranks of importers in 2019, several countries made sound progress on infrastructure development and are set to begin importing in the coming year or two.

“At the start of 2020 eight new floating terminals and 18 new onshore terminals were reported to be under development,” said the GIIGNL President.

“Total regasification capacity under construction at year-end reached 131 million tonnes per annum,” added Dauger.

“About 63 percent of the capacity under construction was located in Asia, of which nearly half was in China and India,” he said.

Global regasification capacity stood at 920 MTPA at the start of 2020 and there were 42 importing countries.

Seven new terminals were commissioned, adding a combined 13 MTPA of new regasification capacity.

Two terminals are based on a floating solution and four are small-scale facilities with a regasification capacity of less than 1 MTPA.

“Three expansion programs were completed in India, Taiwan and Thailand, adding 5 MTPA of LNG regasification capacity,” said Dauger in his overview.

In Asia, demand was characterized by two diverging trends: on the one hand, it continued to be boosted by China despite the US-China trade frictions and the slowdown of the coal-to-gas switch in the industrial sector.

On the other hand LNG demand declined in Japan and South Korea, where increasing levels of nuclear power generation and the pace of renewables deployment influenced the role of LNG in the power mix.

“In Europe, the absorption of surplus volumes was enabled by a combination of lower pipeline imports, declining domestic production, increased storage use and additional gas-fired power generation,” he explained.

“Imports dwindled in the Middle East as Egypt increased its exports. The same dynamic occurred in South America as Argentina started LNG production and exports,” added Dauger.

The GIIGNL report also noted that for LNG sellers and buyers, business models and contractual arrangements are becoming increasingly diversified.

“Traders continue to take advantage of seasonal and local supply tensions and integrated portfolio players are displaying impressive growth, aiming to bridge the disconnect between LNG seller and buyer interests,” it said.

“We see competing interests, a world in which sellers require long-term commitments to support their investments, whereas buyers need shorter contract durations, diversified pricing structures, increased destination flexibility and greater volume flexibility in order to manage demand uncertainty,” added the report.

LNG commercial operations over the previous near enabled the delivery of 100,000 cargoes without major incident, showing a remarkable track-record of safety.

“As we enter a new decade and as GIIGNL is approaching its 50th anniversary, our association remains committed to promoting cooperation between LNG players and to supporting the development of safe, efficient and sustainable LNG imports for a responsible energy transition,” stated President Dauger.