Does LNG have a long-term future in the UAE?

on 03/28/2017 - 03:32 pm

Does LNG have a long-term future in the UAE?
 
The United Arab Emirates (UAE) is one of the world’s longest-established LNG exporters. But despite holding the world’s sixth largest gas reserves, LNG imports into the federation increased at an impressive rate since 2010, when the Jebel Ali floating terminal in Dubai started up. With gas representing more than 90% of the power fuel mix, LNG purchases have been key to fill a widening supply deficit in order to match rapidly growing gas-to-power demand.
 
Today, LNG remains at the heart of the UAE’s strategy to meet rising energy consumption and support economic and industrial expansion in times of reduced oil inc ...

Eastern Asian LNG Gross Imports Increased by 3.4% in 2016

on 03/13/2017 - 01:54 pm

LNG imports in Japan, South Korea, China and Taiwan reached a total of 157.9 Mt in 2016, increasing by 3.4% compared to 2015 (152.7 Mt). This growth came mainly from China where imports surged by 33% year-on-year and to a lesser extent from Taiwan (+2.7%). In the meantime, imports of the world’s two largest consumers of LNG – Japan and South Korea – changed by -2% and +0.2%, respectively.
 
See full article by CEDIGAZ

LNG Hedging Using Henry Hub Natural Gas Options

on 01/04/2017 - 03:10 pm

A major shift in the global natural gas market occurred in November 2016. The U.S. became a net exporter of liquefied natural gas (LNG). The trend is expected to continue as exports flow into Asia and Europe. For now, long-term LNG contracts are mainly linked to crude oil even though LNG and crude are different fuel types. In Japan, LNG is priced off the Japan Crude Cocktail (JCC), a blend of crude oil imports into the country, consisting mainly of Brent.
 
The drawback is that crude oil is de-coupled from spot LNG prices. Shippers and consumers want a liquid contract that more accurately reflects the price dynamics of cargoes shipped from the Gulf Coast. As a result, Henry Hub natura ...

The Growth in Asian LNG Trading Hubs

on 10/03/2016 - 02:00 pm

East Asia is gearing to change its dominant oil indexed long term contracts to more flexible spot indexed contracts for its LNG and gas imports at regional hubs. Most LNG to East Asia was traded under oil indexed contracts despite LNG to the East Asian region coming from various countries.
 
However, the oil indexed pricing mechanisms face many criticisms in terms of structure, duration and the substantial gaps in prices between North America, Europe, and Asia. It is thus of East Asia’s interest to create its own regional gas trading hubs that can generate more transparent price index reflecting the region’s own supply and demand fundamentals for its gas trade, move away f ...