Gastech Insights is an online platform which delivers unique content, analysis and online discussions on the most important issues, from the perspective of those within the global gas and LNG community. It also gives gas professionals a voice and encourages them to become active contributors by sharing their knowledge, ideas and opinions on a vast range of industry topics.
Located at the heart of Europe and an important hub for the European natural gas transport system, Gascade’s natural gas pipeline grid is approximately 2,4000 kilometres long and links customers and suppliers across Germany. Keen to hear more about the EUGAL pipeline and the future flows of energy, Gastech Insights spoke with EAGC 2018 Governing Body Member and Head of Market Area Management and Business Development at Gascade, Ludger Hümbs.
Natural gas is expected to become the fastest-growing fuel globally by 2040, with a demand rise of more than 55%, as reported by the International Energy Agency, between 2010 and 2040. Bringing numerous benefits, it is important the gas industry must truly promote the opportunities gas brings.
Since the liberalisation of the European gas markets, policy analysts agree the EU gas markets have radically evolved. With more LNG entering the markets and with an increasing number of gas pipelines coming into action, the European gas industry continues to grow and change.
With demand for LNG predicted to continue its upward trend well into 2030, the time is right to establish well-functioning LNG supply chains in the world’s fast-growing gas markets, notably India, Bangladesh, Pakistan, Sri Lanka and archipelago countries in Southeast Asia, the Americas including Chile, Ecuador, Panama and Peru, as well as Africa.
Currently, small-scale LNG allows enhanced access to clean and affordable energy as the global population is soaring, and at the same time, boosts rapid maritime and land transport expansion.
Global LNG supply is expected to grow at an unprecedented rate from 340 million tonnes per annum (mtpa) in 2016 to 486 mtpa in 2021, up 43%. While China has absorbed much of that recent growth, it is unlikely the Chinese demand will be the sole outlet for this further growth. Increase in demand in the other mature LNG markets of Asia and Europe is expected to be modest or flat. In this environment we can probably conclude the following:
As Canada's gas and LNG industry continues to take steps closer towards competing in the global market, it is not just new projects we must keep our eye on, but also new governments and regions who are keen to grow their LNG presence.
In 2017 Europe saw a vast increase in imports due to the European gas demand growing by 9%. This continued growth means that infrastructure must evolve and develop to meet these extra demands. With a mission to actively contribute to the construction of a single, sustainable and competitive gas market in Europe, Gas Infrastructure Europe (GIE) ensures European stakeholders successfully operate within the ever-changing regulatory framework.
Following the new regulations which came into force November 2017, improving the security of gas supply in Europe has been a hot topic for the national and international industry. To help prevent potential future supply disruptions, this EU legislation creates common standards and indicators. After the successful Nord Stream gas pipeline, Nord Stream 2 is being built as a new export pipeline running from Russia to Europe and offers another supply of natural gas in Europe.
As the EU’s energy mix evolves, the share of natural gas continues to increase from 24% in 2016 to 27% by 2040, as reported in BP’s energy outlook.
With the global demand for LNG continuing to grow, the window of opportunity is moving closer to Canada’s natural gas and LNG industry. Focused on the assessment of project’s techo-commercial viability and the selection of development concepts, Advisian supports the decision making on critical front-end planning issues which will enhance business objectives.
As Canada’s natural gas and LNG industry continues to keep gas players on the edge of their seat; so far in 2018, the market has welcomed some very positive developments which could drastically change Canada’s industry as we know it. In an official statement, the District of Kitimat announced it was ‘very pleased with the decision’ surrounding the BC government removing barriers associated to the LNG industry.
Most attention surrounding Canada’s potential to join the global LNG industry is focused on its west coast, but some 6,000 km east of Kitimat, British Columbia, Liquefied Natural Gas Ltd. (LNG Limited) of Australia is moving forward with its 8mn metric tons/year (mt/yr) Bear Head LNG project, on the north shore of Nova Scotia’s Strait of Canso.
Setting a model for small-scale importing markets, the Jamaican government and its electric utility monopoly Jamaica Public Services (JPS) have worked closely and effectively with a single private partner, U.S.-based New Fortress Energy (NFE), to rapidly introduce LNG within 1 year of the August 2015 gas-supply agreement. The island offers a case study with several specific lessons for both private developers and governments to succeed with minimal delays in implementing midstream and downstream gas projects.
To meet the growing demand for electricity and address specific issues arising from the significant expansion of renewable energy, the Kingdom of Morocco has decided to diversify its generation mix by increasing the use of liquefied natural gas (“LNG”) with an ambitious Gas to Power project. A two-stage development plan:
Lithuanian LNG import levels are consistently among the lowest of the LNG importing countries due to the limited size of the Lithuanian gas and by extension, the LNG market. Yet, Klaipeda’s FSRU independence utilization rate sits comfortably above the European average.