Gas crunch will prolong the energy crisis into 2022

2021 ◽  
Keyword(s):  
Supply Chain ◽  
Natural Gas ◽  
Low Income ◽  
Liquefied Natural Gas ◽  
Energy Crisis ◽  
Electricity Prices ◽  
Industrial Activity ◽  
Content Type ◽  
Manufactured Goods ◽  
Marginal Power

Significance Particularly in Europe, where gas-fired generation sets the marginal power price, high gas prices are being passed directly through into higher electricity prices. Impacts Low-income households will be particularly hard hit by increased gas and power prices, despite government efforts to protect consumers. Reduced industrial activity will hamper the process of supply chain restocking and pass price pressures through to manufactured goods. High liquefied natural gas (LNG) prices will support new investment in LNG capacity, but also restrain coal-to-gas switching in Asia.

scholarly journals An innovative decision support tool for liquefied natural gas supply chain planning

2020 ◽  
Vol 5 (1) ◽  
pp. 121-136
Author(s):  
Christos Papaleonidas ◽  
Dimitrios V. Lyridis ◽  
Alexios Papakostas ◽  
Dimitris Antonis Konstantinidis
Keyword(s):  
Supply Chain ◽  
Decision Support ◽  
Natural Gas ◽  
Decision Support Tool ◽  
Liquefied Natural Gas ◽  
Maritime Transportation ◽  
Management Tool ◽  
Content Type ◽  
Support Tool ◽  
Tramp Shipping

Purpose The purpose of this paper is to improve the tactical planning of the stakeholders of the midstream liquefied natural gas (LNG) supply chain, using an optimisation approach. The results can contribute to enhance the proactivity on significant investment decisions. Design/methodology/approach A decision support tool (DST) is proposed to minimise the operational cost of a fleet of vessels. Mixed integer linear programming (MILP) used to perform contract assignment combined with a genetic algorithm solution are the foundations of the DST. The aforementioned methods present a formulation of the maritime transportation problem from the scope of tramp shipping companies. Findings The validation of the DST through a realistic case study illustrates its potential in generating quantitative data about the cost of the midstream LNG supply chain and the annual operations schedule for a fleet of LNG vessels. Research limitations/implications The LNG transportation scenarios included assumptions, which were required for resource reasons, such as omission of stochasticity. Notwithstanding the assumptions made, it is to the authors’ belief that the paper meets its objectives as described above. Practical implications Potential practitioners may exploit the results to make informed decisions on the operation of LNG vessels, charter rate quotes and/or redeployment of existing fleet. Originality/value The research has a novel approach as it combines the creation of practical management tool, with a comprehensive mathematical modelling, for the midstream LNG supply chain. Quantifying future fleet costs is an alternative approach, which may improve the planning procedure of a tramp shipping company.

scholarly journals Supply chain strategies as drivers of financial performance in liquefied natural gas networks

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nasiru Zubairu ◽  
John Dinwoodie ◽  
Kannan Govindan ◽  
Lise Hunter ◽  
Saeyeon Roh
Keyword(s):  
Supply Chain ◽  
Natural Gas ◽  
Financial Performance ◽  
Liquefied Natural Gas ◽  
Content Type ◽  
Financial Outcomes ◽  
Template Analysis ◽  
Single Strategy ◽  
Hierarchy Process

Purpose The purpose of this study is to identify and evaluate supply chain strategies (SCSs) that drive financial performance to guide practitioners, especially in liquefied natural gas (LNG) networks, to review and adopt SCSs that drive competitiveness and value creation for investors. Design/methodology/approach Analytical hierarchy process (AHP) was deployed to prioritise SCSs according to their relative impact on financial performance in LNG networks. Interviews with experts were analysed using template analysis to establish latent drivers of financial performance specific to LNG networks. Findings Results support the significant role of SCSs in improving financial performance. Although findings prioritised collaborative strategy as the most important driver of financial performance in LNG networks, to fully optimise financial outcomes, all the SCSs should be implemented across LNG networks as no single strategy in isolation is a standalone driver of financial performance. Practical implications The AHP model provides a novel ranking for SCSs and measures to guide decision-makers. LNG practitioners may exploit the results to make informed decisions. Originality/value The study extends previous literature by proposing a framework and a new LNG empirical model that facilitates understanding of how SCSs contribute positively to financial performance and support practitioners in making strategic supply chain decisions.

LNGScheduler: a rich model for coordinating vessel routing, inventories and trade in the liquefied natural gas supply chain

2010 ◽  
Vol 3 (4) ◽  
pp. 31-64 ◽  
Author(s):  
Marte Fodstad ◽  
Kristin Tolstad Uggen ◽  
Frode Rømo ◽  
Arnt-Gunnar Lium ◽  
Geert Stremersch
Keyword(s):  
Supply Chain ◽  
Natural Gas ◽  
Liquefied Natural Gas ◽  
Gas Supply

Gas prices expose Europe’s energy vulnerability

2021 ◽  
Keyword(s):  
Natural Gas ◽  
Central Banks ◽  
Liquefied Natural Gas ◽  
Electricity Price ◽  
Energy Prices ◽  
Content Type ◽  
Indigenous Production ◽  
Europe Today ◽  
The Cost

Significance The cost of gas-fired generation sets the electricity price in much of Europe today. Falling indigenous production has left Europe reliant on gas imports and exposed it to global liquefied natural gas (LNG) prices set by fast-recovering China. This has left retail-only electricity suppliers vulnerable and increases the risk that falling disposable incomes will undermine post-pandemic recovery. Impacts EU carbon allowance prices will stay strong. Higher energy prices will stoke inflation amid a fragile recovery, posing a dilemma for central banks. Rising gas prices have had ancillary but potentially alarming impacts as some fertiliser and CO2 producers have shut in production.

Algeria-Morocco pipeline closure could add to tensions

2021 ◽  
Keyword(s):  
Natural Gas ◽  
Liquefied Natural Gas ◽  
East Mediterranean ◽  
Content Type

Significance The pipeline transit agreement is set to expire at the end of October. It comes as tensions between Morocco and Algeria have escalated, with the latter cutting diplomatic ties with Rabat and closing its airspace to Moroccan airplanes. Impacts Algeria will argue that trans-Morocco gas can be replaced with extra volumes via the Medgaz line and with liquefied natural gas. The supply implications mainly affect Spain and Morocco, and will have little relevance for other European gas projects. In the East Mediterranean, the costs of a pipeline to Europe remain prohibitively high.

New Tanzanian government’s focus may shift

2021 ◽  
Keyword(s):  
Civil Society ◽  
Natural Gas ◽  
Rare Earths ◽  
Liquefied Natural Gas ◽  
Content Type ◽  
Development Agenda

Significance Magufuli and the ruling Chama Cha Mapinduzi (CCM) have entered 2021 on a high, having swept the October 31 elections and essentially removed all vestiges of opposition to their power. They now need to deliver on their ambitious development agenda. Impacts Crackdowns against the opposition, civil society and other critics will intensify. Persistent bottlenecks in government suggest progress towards a flagship USD30bn liquefied natural gas project may remain slow. Reports that Tanzania is close to finalising a deal for its first ever rare earths mine could give Magufuli’s agenda an early boost.

Impact of fossil fuel prices on electricity prices in Mexico

2019 ◽  
Vol 46 (2) ◽  
pp. 356-371 ◽  
Author(s):  
Bruno Bernal ◽  
Juan Carlos Molero ◽  
Fernando Perez De Gracia
Keyword(s):  
Natural Gas ◽  
Crude Oil ◽  
Fossil Fuel ◽  
Positive Impact ◽  
Electricity Price ◽  
Electricity Prices ◽  
Content Type ◽  
Fuel Prices ◽  
Electricity Rates ◽  
Domestic Electricity

Purpose The purpose of this paper is to examine the impact of fossil fuel prices – crude oil, natural gas and coal – on different electricity prices in Mexico. The use of alternative variables for electricity price helps to increase the robustness of the analysis in comparison to previous empirical studies. Design/methodology/approach The authors use an unrestricted vector autoregressive model and the sample covers the period January 2006 to January 2016. Findings Empirical findings suggest that crude oil, natural gas and coal prices have a significant positive impact on electricity prices – domestic electricity rates – in Mexico in the short run. Furthermore, crude oil and natural gas prices have also a significant positive impact on electricity prices – commercial and industrial electricity rates. Originality/value Two are the main contributions. First, this paper explores the nexus among crude oil, natural gas, coal and electricity prices in Mexico, while previous studies focus on the US, UK and some European economies. Second, instead of using one electricity price as a reference of national or domestic electricity sector, the analysis considers alternative Mexican electricity prices.

Russia will increase covert Baltic interference

2015 ◽  
Keyword(s):  
Natural Gas ◽  
Liquefied Natural Gas ◽  
Lightning Strike ◽  
Baltic States ◽  
Content Type ◽  
The Past ◽  
The Baltic ◽  
Military Exercise

Significance In line with such concerns, Estonia held a large military exercise, Hedgehog, on May 4-15, involving 13,000 troops. On May 6, Lithuania launched Lightning Strike, a military exercise involving 3,000 troops in a simulated defence of the country's new liquefied natural gas (LNG) terminal at Klaipeda. In December, Latvia said Russian submarines had approached its maritime borders more than 50 times in the past year. However, Russia's more overt activities also pose a major risk to the Baltics. Impacts Russian intelligence will continue to target not just Baltic secrets but, through them, NATO and EU ones. Russian operations will aim to create division by playing on discontent within sizeable ethnic Russian minorities who feel marginalised. NATO will increase the rate and size of Baltic drills to reassure the Baltic states.

Mozambique juggles new interests and old problems

2015 ◽  
Keyword(s):  
Natural Gas ◽  
Liquefied Natural Gas ◽  
Traditional Agriculture ◽  
Short Term ◽  
Content Type ◽  
Electoral Support ◽  
Debt Stress ◽  
Fiscal Risks

Subject Mozambique's new government. Significance President Filipe Nyusi on January 17 unveiled his first cabinet. The line-up marks a break with the administration of former President Armando Guebuza, but balances competing factions within the ruling FRELIMO party. The new government's main focus will be to turn offshore natural gas discoveries into liquefied natural gas (LNG) exports. Declines in FRELIMO's electoral support indicate pressure to demonstrate more inclusive benefits than has been the case with previous mega-projects. Impacts Lower prices for traditional (agriculture) and megaproject exports (coal, aluminium) will continue; last year exports fell by 8.4%. With mining under stress, companies may delay production expansion planned to take place after the completion of the Nacala railway. For the short term, fiscal risks are greater than debt stress -- particular given 2014 election-related spending.

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