Assessing the Possibility of a Gas Hub Emergence in East Asia

2021 ◽  
Vol 144 ◽  
pp. 136-141
Author(s):  
Maxim Yu. Shevyrenkov ◽  
Keyword(s):  
Natural Gas ◽  
East Asia ◽  
Price Index ◽  
Current Situation ◽  
Liquefied Natural Gas ◽  
Asia Pacific ◽  
Pricing System ◽  
Main Factors ◽  
Gas Market

The article examines the problem of emergence in East Asia of a regional trading center (hub) for liquefied natural gas (LNG) with its own independent price index, which can become the basis for pricing in long-term contracts for supplying gas to the countries of this region. The author identifies the main factors stimulating Asian players in the gas market to pass to a new pricing system while signing gas purchase contracts. The countries — the main candidates for creating their own LNG hub — are considered. The article analyzes current situation and the prospects for developing regional LNG hubs in such countries as China, Japan and Singapore. The paper also identifies the main obstacles to creating developed exchange trade of LNG in the Asia-Pacific countries and estimates the most likely places for the emergence of a gas hub.

scholarly journals ANALYSIS OF LNG MARKET TRENDS AND PROSPECTS FOR THE IMPLEMENTATION OF RUSSIAN ARCTIC LNG PROJECTS.

2021 ◽  
Vol 71 (1/2021) ◽  
pp. 83-99
Author(s):  
Michael V. Ulchenko ◽  
Keyword(s):  
United States ◽  
Natural Gas ◽  
Production Capacity ◽  
The United States ◽  
Gas Production ◽  
Liquefied Natural Gas ◽  
Asia Pacific ◽  
The European Union ◽  
Gas Market ◽  
Near Future

Currently, natural gas is considered by most countries as the main source of energy, since it is the cleanest of all hydrocarbon fuels. So, the countries of the European Union have already announced their intention to completely abandon coal, in the production of electricity, in favor of natural gas by 2030. A similar policy is being pursued by the countries of the Asia-Pacific region, although they do not specify any specific deadlines. At the same time, natural gas is transported in two ways — using a pipeline and in liquefied form. The main advantage of the second method is that after liquefaction, the gas can be delivered to any point of the planet where there is a demand for it. Currently, the growth rate of the liquefied natural gas market is such that in 15–20 years it will not only catch up with the pipeline market, but also surpass it The paper identifies the key producers and exporters of liquefied natural gas, as well as assesses their potential opportunities in terms of increasing the volume of natural gas production and LNG production. The analysis showed that at the beginning of 2021, the main LNG exporters are Australia, Algeria, Indonesia, Malaysia, Qatar, Nigeria, Russia and the United States. At the same time, Qatar, Russia and the United States have real opportunities to increase export volumes. Australia is also able to increase production volumes, as it has reserves and spare production capacity, but due to the significantly increased domestic demand for LNG, it is likely that it will not be able to do this in the near future.

Algeria will aim to hold on to gas market share

2018 ◽  
Keyword(s):  
Natural Gas ◽  
Chief Executive ◽  
Liquefied Natural Gas ◽  
Supply Contracts ◽  
Content Type ◽  
Global Demand ◽  
Gas Market ◽  
One Year ◽  
Gas Supply

Significance Sonatrach is preparing to renegotiate most of its long-term contracts to supply natural gas by pipeline and as liquefied natural gas (LNG), as their expiry dates approach in 2019 and 2020. Ould Kaddour, who was appointed Sonatrach’s chief executive one year ago after a period of turbulence within Sonatrach, has made clear that he appreciates the need for a flexible approach in an intensely competitive market. Impacts Algeria’s hydrocarbons production is declining, but global demand for LNG in particular is rising fast. Securing new natural gas supply contracts will be vital for Algeria’s revenue prospects. Ould Kaddour’s efforts to foster better relations with international companies could be rewarded by increased investment.

New conditions of competition in the European gas market

2020 ◽  
Vol 22 (5) ◽  
pp. 84-92
Author(s):  
PETER ILIEV PETROV ◽  
Keyword(s):  
Natural Gas ◽  
Liquefied Natural Gas ◽  
The European Union ◽  
Practical Application ◽  
Gas Industry ◽  
Natural Gas Market ◽  
Gas Market ◽  
The Impact ◽  
Different Parts

This article aims to discuss the process of liberalization of the natural gas market in the European Union (EU). The purpose of this research is to show the fundamental characteristics of the gas industry, the process of reconstruction of the European gas market, taking into account the ongoing changes in the context of geopolitical, ecological, and technological determinants of the international and European energy and gas sector. The article describes the structure of the modern European natural gas market, compares the competitiveness of gas transportation methods through trunk pipelines and gas tankers transporting liquefied natural gas. The article examines the impact of the increase in the supply of liquefied natural gas on the situation with the turnover of gas trade in the European market, in particular, how it affects the delivery of hydrocarbons and the growth in the scale of exchange trading. The article examines the Groningen model, which influences the development of gas exchange trading and natural gas trading through long-term contracts. The evolution of the European policy in the field of natural gas, the established strictly regulated version of the “well-functioning” gas market, remains as one too political and unstable experiment. The importance of natural gas changes all the time, depending on economics, the security of deliveries, and sustainability. Furthermore, the focus on that importance and its practical application vary in different parts of Europe. The conclusion is made that a “well-functioning” gas market is characterized by the presence of a large number of suppliers, and competition leads to a noticeable decrease in prices for natural gas. However, in the current situation, the demand for gas turns out to be unstable, and difficult conditions for pipeline supplies are emerging for traditional suppliers. In the long term, the “well- functioning” gas market scheme will remain highly politicized and unstable, with increased competition in supply and a downward trend in gas prices. Thus, the European gas market is transforming towards the formation of a “buyer’s market”.

scholarly journals Prospects for the Development of Primary Energy Markets in the Asia-Pacific Region: The Potential Place for Russian Resources

2021 ◽  
Vol 8 (2) ◽  
pp. 31-53
Author(s):  
Olga Dyomina ◽  
Keyword(s):  
Natural Gas ◽  
Primary Energy ◽  
Energy Resources ◽  
Asia Pacific ◽  
Pacific Region ◽  
Asia Pacific Region ◽  
Coal Market ◽  
Gas Market ◽  
The Republic

The current situation in the oil, natural gas and coal markets in the Asia-Pacific region has been analyzed by the author. It is shown that the potential for increasing the share of Russian energy resources may be due to the redistribution of the shares of the main suppliers as oil imports diversify, primarily in Japan and the Republic of Korea; in the natural gas market – increasing the volume of pipeline supplies of natural gas to China in accordance with the current long-term contract and the redistribution of Indonesia’s share in the market; in the coal market – the redistribution of Indonesia’s share due to the advantages in coal quality. Price and infrastructure constraints for increasing the supply of Russian energy resources to the Asia-Pacific region have been noted, too

scholarly journals ECONOMIC ENVIRONMENT OF ARCTIC LIQUEFIED NATURAL GAS SUPPLIESTO THE ASIAN-PACIFIC REGION COUNTRIES UNDER THE END OF THE “TRADE WAR” BETWEEN THE USA AND CHINA

2020 ◽  
Vol 68 (2/2020) ◽  
pp. 12-21
Author(s):  
M. V. Ulchenko ◽  
Keyword(s):  
United States ◽  
Growth Rate ◽  
Natural Gas ◽  
South Korea ◽  
The United States ◽  
Liquefied Natural Gas ◽  
Asia Pacific ◽  
Russian Arctic ◽  
Pacific Region ◽  
Asia Pacific Region

Currently, the Asia-Pacific market is a priority goal for almost all major producers of liquefied natural gas(LNG). This is due to the relatively high price that local consumers are willing to pay, as well as the accelerated growth rate of natural gas consumption. At the same time, China is the main driver of growth in demand for LNGin the world, has concluded a trade agreement with the United States, which involves the purchase of energy resources worth more than $ 52 billion over two years. Given the decline in LNG prices, as well as increased competition, the issue of the prospects for sales of Russian Arctic gas on the market of the Asia-Pacific region becomes particularly relevant.The study provides a generalized assessment of the needs of the main importers of LNG ––China, South Korea and Japan, with a planning horizon of 4–5 years. The relatively high growth rates of the economy, partial rejection of nuclear energy, struggle to improve the environmental situation, as well as the desire to diversify supply routes explain the needs of the countries in the Asia-Pacific region for additional volumes of LNGin the near future. The analysis showed that both Japan and South Korea are interested in increasing the volume of imports of Russian arctic LNG, whose key advantages over most competitors are the price and relative proximity of sales markets. At the same time, the reduction in the number of operating gas drilling rigs in the United States indicates that it will not be possible to maintain the growth rate of LNG production at the level of 2018 and 2019.

Top three LNG buyers to search for alternative LNG pricing structure after paying a total cost premium of $56 billion for oil-indexed LNG contracts in 2019 and 2020 – how will this affect Australia as the number one supplier to this market?

2021 ◽  
Vol 61 (2) ◽  
pp. 412
Author(s):  
Sindre Knutsson
Keyword(s):  
Natural Gas ◽  
South Korea ◽  
Spot Market ◽  
Liquefied Natural Gas ◽  
The Other ◽  
Future Market ◽  
Total Cost ◽  
The Future

Increasing spreads between spot liquefied natural gas (LNG) and oil-indexed contracts have resulted in the world’s top three LNG buyers paying a cost premium of $33 billion in 2019 and 23 billion in 2020. The top three buyers are Japan, China and South Korea, which had a combined 151Mt of long-term LNG contracts indexed to oil in 2020. This cost premium shows what top Asian buyers are currently paying for the security of LNG supply through long-term oil-indexed contracts. However, it also shows the potential reward Asian buyers have if they manage to develop a liquid LNG pricing hub in Asia to which they can index their contracts. Japanese buyers’ efforts of increasing flexibility in contracts, both through take-or-pay agreements and destination flexibility and aims of growing the spot market, will increasingly support the liquidity of the LNG market. However, there will be resistance from the other side of the table, for where someone is paying a premium, or making a loss, someone is making money. 2020 was another year of plenty for LNG producers selling oil-indexed volumes to Asian markets. Australia is the largest seller of LNG to Japan, China and South Korea with over 60Mt of long-term LNG contracts indexed to oil in 2020. Australia has benefited from having their contracts indexed to oil, but what’s next? In this paper, Rystad Energy will discuss the future market for Australian LNG exports including development in LNG demand, contract trends and price spreads.

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