LNG 101 week seven: Role of LNG in world energy supply
Nov25

LNG 101 week seven: Role of LNG in world energy supply

International Energy Outlook 2013 projects that world energy consumption will grow by 56 percent between 2010 and 2040. Much of the growth in energy consumption is projected to occur in countries outside the Organization for Economic Cooperation and Develop­ment known as non-OECD. In these non-OECD countries, demand is driven by strong, long-term economic growth, and is expected to increase by 90 percent. In OECD coun­tries, the increase is predicted to be 17 percent. China accounts for the largest share of the growth in global energy use, with its demand rising 60 percent by 2035, followed by India — where de­mand doubles. A recent headline in Reuters pro­claimed “India’s future lies in liquefied natural gas.” Imports of LNG by India “will soar in the next decade to fuel an expanding economy; pitting India against China and Japan for supplies as its domestic gas output struggles and overland delivery remains a dream.” India’s trillion-dollar economy is already one of world’s largest import­ers of LNG. The rapid increase in LNG demand from Japan will limit the ability of emerg­ing markets such as India to obtain LNG at an affordable price. The extra sup­plies that India needs are more likely to come from Qatar and Australia. Qa­tar already supplies India on long-term contracts. According to a 2012 study done by Wood Mackenzie Ltd., China may need to boost imports of liquefied natural gas by about 80 percent from current contracted volumes to meet their demand for the fuel. The world’s biggest energy user may need to purchase an additional 37 mil­lion metric tons of LNG by 2030 on top of current contracted volumes of 46 mil­lion metric tons. Imports of LNG by China rose 34 percent from 2011 to 2012. Two years after the Fukushima earthquake, Japan’s energy market remains in transition. As the world’s biggest LNG consumer, this has global implications for the LNG market. Only 5 percent of Japan’s nuclear capacity is operational as of January 2013. Power generators have switched to alternative fuels, most notably natu­ral gas. This has intensified global com­petition for LNG, led to cargo diversions from other markets and contributed to rising prices for flexible LNG. So it’s no surprise that fossil fuels are projected to supply almost 80 per­cent of world energy use through 2040. Natural gas is the fastest-growing fossil fuel in the outlook. Global natural gas consumption is expected to increase by almost 2 percent per year. According to the Energy Informa­tion Administration, or EIA, “large‐scale investment in energy‐supply infrastruc­ture is required to replace existing supply capacity and expand to meet growing energy needs. Some industry analysts believe that a cumulative in­vestment of $37...

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LNG 101 week six: terminals: operating & under construction
Nov18

LNG 101 week six: terminals: operating & under construction

As of October 2013, there are 32 on-stream LNG liquefaction plants in the world, with 13 under construction and 17 others planned.  There are 96 on-stream regasification terminals, with 18 under construction and 25 others planned. The global list of regasification terminals in the planning stage has shrunk from an all-time high of 47 to 25 in the last year, as several potential projects have either been suspended or canceled. Liquefaction plants in the planning stage were reduced from 21 to 17 in the same time period. Australia and Malaysia each have three on-stream LNG liquefaction plants. Qatar leads the way with six. Australia is poised to surpass Qatar with seven new plants under construction and six more in the planning phase. New Australian projects have been getting approved at a quick pace. More than $180 billion worth of LNG export projects are now being built, putting the country on track to quadruple its LNG exports by the end of the decade. Upon completion of the $34 billion Ichthys project, Australia is positioned to overtake Qatar as the world’s top exporter of LNG by 2017. Australia’s first LNG project began in 1980 when six major producers united to form the North West Shelf Venture, or NWSV. Located north of Perth, and with capital expenditures of about  $27 billion, the project was commissioned in 1984  for domestic supply, followed in 1989 by the first  shipment  of LNG to Japan. The NWSV project represents Australia’s largest oil and gas resource development and currently accounts for more than 40 percent of Australia’s oil and gas production.     Japan leads the way for on-stream regasification terminals with 28. They also have three under construction and two others in the planning phase. China has six on-stream regasification terminals with eight under construction. The United States has 11 on-stream regasification terminals with none currently under construction and only two in the planning phase. Eleven U.S. projects that were in the planning phase have either been canceled or suspended. In the United States, the Federal Energy Regulatory Commission, or FERC, is responsible for authorizing the location and construction of onshore and near-shore LNG import or export facilities under Section 3 of the Natural Gas Act. The Commission also issues certificates of public convenience and necessity for LNG facilities engaged in interstate natural gas transportation by pipeline. As required by the National Environmental Policy Act, FERC prepares environmental assessments or impact statements for proposed LNG terminals. According to the FERC website, “there are more than 110 LNG facilities operating in the U.S. performing a variety of services. Some facilities export natural gas from the U.S., some...

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Petroleum Equipment & Services, Industrial product broker reducing the waste in Alaska’s landfills
Nov18

Petroleum Equipment & Services, Industrial product broker reducing the waste in Alaska’s landfills

Founded in 1983 Petroleum Equipment & Services, Inc. (PESI) is an industrial product broker, specializing in Oil & Gas equipment. In addition to Downhole and Downstream (MRO Sales) Divisions, PESI has a wholly-owned subsidiary, Alaska Service Technology (ASTECH), a Green Star company specializing in cleaning and recycling plastic thread protectors here in Alaska. When it opened, PESI was determined to bring previously unavailable products and services to the oil and gas industry in Alaska, and do it at a reasonable price. That is still their philosophy 30 years later. In 1999, they acquired MRO Sales which is now the Downstream Division, a wholly-owned subsidiary of PESI. In 2002, PESI formed ASTECH in Kenai, Alaska, a company using an environmentally friendly cleaning and recycling process for plastic thread protectors used in the petroleum industry. To date, ASTECH is responsible for keeping over 5.5 million pounds of mental and plastic out of Alaskan landfills. PESI takes pride in supporting “every phase of your operation from site preparation, downhole operations to ongoing maintenance and repairs.” More about their services and Divisions is available on their...

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Dowland Bach, Steel fabrication and a portfolio of custom work around the globe
Nov18

Dowland Bach, Steel fabrication and a portfolio of custom work around the globe

Dowland Bach was founded to provide fail-safe wellhead shutdown systems in Prudhoe Bay. Today, it is an industry leader in stainless steel fabrication with customers around the world. From engineering, to design and fabrication, Dowland Bach has been serving industry needs since 1975. In addition to custom control systems, Dowland Bach also provides engineering and NRTL Listing services, wellhead control panel fabrication, custom engraving and much more. Part of the Koniag Family of Companies, Dowland Bach says, “we invest in individuals for their long-term relationship, to benefit our clients with a high level of flexibility and an unsurpassed commitment to customer satisfaction.” Dowland Bach has produced more than 7,000 wellhead control systems since it opened and has shipped products to customers around the world. You can learn more about their custom fabrication work and see an online portfolio of projects at...

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Alaska Chadux, Member-funded spill removal and services for Alaska
Nov18

Alaska Chadux, Member-funded spill removal and services for Alaska

A 501 (c)(4) not-for-profit spill removal organization, Alaska Chadux Corporation derives its name from the Aleut word for whale blubber. This member funded corporation works to contain, control and clean up spills throughout Alaska. With equipment hubs located throughout the state, Chadux can respond to the needs of member companies efficiently and effectively, throughout Alaska. In addition to spill response, Chadux provides training and planning services, as well as incident management and emergency response personnel and wildlife hazing and capture personnel. In their own words, “Chadux’s mission is to be Alaska’s responder of choice, ready to protect Alaska’s environment in a safe, efficient, and cost effective manner.” To learn more visit...

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