Published By : 25 Jul 2016 | Published By : QYRESEARCH
The use of natural gas results in half pollution than what is caused in the use of coal for power generation. This is making natural gas an increasingly popular energy source. Moreover, in liquid state, natural gas can be stored and transported across long distances. This in turn, helps in the supply diversification and enhances energy security in the long run. In particular, liquefied natural gas represents the main alternative for regions that are not connected by pipeline.
The liquefied natural gas (LNG) industry is now an indispensable part of the global energy market. The trade for liquefied natural gas has increased exponentially in the last two decades and it is anticipated to double in the forthcoming years.
Despite several advantages, the use of LNG has high-cost implications. The transportation of LNG requires special terminals for liquefaction and regasification purposes. Due to the high construction cost of specialty infrastructure, their number is limited across the world. As per the International Gas Union, there are only 28 countries worldwide that have regasification terminals, although some are under development.
The Europe LNG market is characterized by decline in domestic consumption and a rapid decline in domestic production. On account of the recent economic slump, the region displays a substantial demand for imports of LNG which is expected to increase in the near term and in the long term. Moreover, the recent plunge in gas prices complemented with abundant supply and a weak global economy has diverted LNG supplies to Europe.
According to estimates of the International Energy Agency and the European Commission, the trend is anticipated to continue in the coming years. The emergence of LNG suppliers and the rising probability of export of shale gas from the U.S. will further magnify the energy scenario in Europe.
The use of LNG as an industrial fuel provides numerous advantages. Industrial processes need significantly large amount of distillate fuels, thus the transition from conventional fuels to LNG can help in substantial capital savings for industries. In addition, the utilization of LNG for several industrial equipment such as mining equipment, drilling equipment, and industrial boilers is cost-effective and is free of emissions.