Gas & LNG in Review: July 2017

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The 5th instalment of the Gastalk webinar series saw presenter Susan Sakmar, Author and visiting Law Professor at the University of Houston Law Centre and leading analyst Stephen O’Rourke, Research Director for Gas Supply – Global Gas Team for Wood Mackenzie discuss the main gas and LNG stories of the month. If you missed out, we have selected some highlights below.  

In response to “U.S. on track to be world’s No.2 LNG exporter by end of 2022: IEA” Mr O’Rourke disagreed; “In terms of LNG capacity and output, we [Wood Mackenzie] still forecast that the US will be behind Qatar and Australia by 2022.” However, it was also stated; “What we have already seen from US LNG so far is the flexibility that it brings to the global LNG market.”

Focusing on Europe, Bloomberg reports “Hungary commits to Russia gas route as Poland looks to US”. Does Russia need to be worried about the US taking some of its market share? Stephen explained, “We believe that Russia will look to defend its market share as more US LNG becomes available to the European market. Russian gas will be competitive against LNG alternatives in the medium term and still achieve acceptable margins in a low-price environment.”

Another interesting article discussed was “FSRU fleet set to double by 2025” published by LNG World Shipping. Addressing the potential increase to 50 vessels, Susan asked, what makes FSRU’s so attractive to new importers? “In most cases, they are less capital intensive than conventional onshore or fixed offshore facilities and they offer quicker access to LNG for markets lacking regasification.”

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