LEAD STORY
After the Great East Japan Earthquake in March 2011, Japan increased LNG imports to an unprecedented level. Against the backdrop of rapidly expanding demand in Japan, the world’s largest LNG consumer, Asian LNG prices also surged.
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LNG has become an increasingly important supply source in meeting the world’s energy needs. Of all natural gas consumed in 2011, 10 percent was transported between producer and market in the form of LNG.
The shale-gas revolution has radically changed the prospects for natural gas in the US. Compared to less than five years ago, projections call for lower future gas prices and abundant supplies.
Singapore is positioning itself as the preeminent trading hub for Asia’s evolving LNG market and could be a destination for the new wave of US LNG exports.
As the industry looks for new LNG supplies, the application of LNG barges has taken new life in the past two years.
Since the first commercial LNG production in 1964 to 2011, the world’s LNG production increased to 241.5 million tonnes per annum with the help of 20 LNG producing countries.
The strong growth in the LNG industry can be attributed to a variety of supply and demand changes. The industry is developing stranded gas fields, pipeline gas from shale gas plays, and more offshore wells with floating LNG.
With a maximum length roughly equal to three football fields and a weight in excess of 100,000 tonnes, LNG carriers are behemoths.
Japan’s largest importer, Tokyo Electric Power, is making preparations for the expected arrival of lean LNG from North America as it plans to cover half of its annual requirement, or up to 10 million tonnes per annum, with a low calorific value LNG to reduce procurement costs.
