Rising Importance of LNG Challenges Gas Monopolistic Market
Published By : 27 Aug 2012 |Published By : QYRESEARCH
The Monopolists in the Oil and Gas power manufacturing are facing challenges from the advanced developments and increased usage of Liquefied Natural Gas (LNG). With new discoveries in the Middle East and Europe LNG is one of the fastest growing fuels in the market.
Findings in Australia and Europe concludes that LNG is about to replace oil in near future and is set to become the second most preferred energy source after coal. These discoveries also challenge the LNG leader Qatar. In the long term these discoveries will create a new market for LNG and can reduce the market share acquired presently by the dominant players.
Despite the economic downturn globally LNG trade volumes were increased by almost 10% from the previous years. The global output climbed to 240.8 million tons according to sources. The demand of LNG is expected to rise at an annual growth rate of 6% from 2011 to 2020. Physically, the gas is already being used as in level of the coal. Last year, LNG cargoes worth USD 250 – 260 Billion were transported in barrels of oil which made one third of total gas sold.
Australia is about to overtake Qatar’s LNG exports of 77 million tons per annum and will become the largest exporter by the end of this decade. Natural gas is being dominated by the pipeline supplies with Russia, Canada and Norway. With the rise of LNG production in Australia, United States and East Africa the demand of natural gas will increase. The boom in the LNG market is attracting new players in the market such as PVM, who opened new trading houses expanding their LNG business. Many corporate players are also being attracted in the LNG business to acquire maximum share in the booming market of LNG.