Bridging the future LNG supply shortfall

Where, who and how?

As Gastech 2018 approaches, Massimo Di-Odoardo (VP Global Gas and LNG Research) and Giles Farrer (Research Director, Global Gas and LNG Supply), spoke with Rebecca Badcock from Gastech Insights about a potential LNG supply shortfall and how the market could respond. The eBook highlights future LNG supply hotpots and explores where and how LNG players are getting ready for the next wave of LNG investments.

There are seven developing hotspots identified in the eBook, along with lists of proposed projects per hotspot and indications of MMPTA per on stream, under construction or proposed project.

Developing LNG hotspots

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In Mozambique, for example, we learn that there are no on stream LNG projects, however three projects are expected to develop resources – two co-ordinated projects utilising an onshore LNG plant and a floating LNG plant. Progress with the two onshore LNG facilities is starting to gain momentum after a slow start. They are looking to clear final regulatory hurdles and secure marketing and financing agreements ahead of FID, which is expected by 2019. The FLNG project is expected to be onstream in 2022.

Looking at the North America West Coast (Canada and US) 'hotspot' we see that the first LNG development project was proposed in Canada in 2010, after years of interest in the abundant gas resources to be found in Western Canada. At the moment, LNG Canada and Woodfibre in British Columbia, Canada and Jordan Cove in Oregon, US are leading the west coast pack. Jordan Cove is facing tougher local opposition than is encountered in the more heavily industrialised Gulf Coast region. All projects plan to utilise the flexibility of the North America pipeline network to source gas but will require greenfield pipes to connect to the plant.

And Oceania is about to boom with Australia overtaking Qatar as the largest LNG producer in the world in 2019, thanks to the eight LNG projects constructed in the last ten years. The projects have ranged from the world's first FLNG facility (Prelude), the first Coal Seam Gas fed LNG project delivered in a Class A nature reserve alongside a world scale Carbon Capture and Storage project (Gorgon). With Prelude FLNG and Ichthys expected to be completed in 2018, the stage is set for delivery of billions of dollars of revenue to the owners and the government for many years to come.

The full eBook, with supporting charts and lots more detail can be downloaded here.