Abstract
Overview
Introduction
This is the first in a seris of two briefs, entitled Atlantic Basin LNG Market
Dynamics, that focuses on the LNG markets in the US and Europe.LNG is an
increasingly important alternative energy source in both the US and European
energy landscape. By analysing the largest LNG market in the Atlantic Basin,
it is possible to understand the long term development of the Atlantic Basin
market.
Scope
- An understanding of the market dynamics driving the LNG market in the
United States.
- The unique position of the United States in the global LNG market.
- An overview of the global LNG market, and the factors that is leading LNG
growth.
- A overview of the major Atlantic Basin LNG producers, and their ability to
fulfil the supply needs of the Atlantic Basin.
Report Highlights
LNG prices are not as volatile as natural gas prices, especially in the years
prior to 2005. LNG, although used principally for power generation, is mainly
a peak shaving commodity. That is, it is stored to offset seasonality and high
peak periods. This explains the lower price volatility of LNG compared to
natural gas.
Canada has been the major supplier of natural gas to the US market. However,
Canadian gas exports to the US has fallen by seven percent over the past five
years. LNG is therefore a viable solution to compensate for the decreasing
production of gas and gas imports from Canada.
Algeria is the largest exporter of Atlantic Basin LNG (24.68 bcm) followed by
Nigeria (17.58 bcm) and Trinidad and Tobago (16.25 bcm).
Reasons to Purchase
- Understand what are the fundemental reasons for the growth in the US LNG
market.
- Understand what motivates the LNG market towards short-term contracts and
spot market transactions.
- Gain valuable insight into the present trends in LNG investment and its
impact on future LNG growth.
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