Competition pattern of the global liquefied natural gas (LNG) trade by network analysis

Chen, Zhihua; An, Haizhong; Gao, Xiangyun; Li, Huajiao; Hao, Xiaoqing

doi:10.1016/j.jngse.2016.06.022

Cited by 61 publications

(23 citation statements)

References 24 publications

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“…Tong, Zheng, and Fang (2014) analyzed establishing a natural gas trading hub in the PRC and concluded that its supporting policies on the natural gas sector, along with the initiation of spot and futures markets, the rapid growth of gas production, and highly improved infrastructures, as well as Shanghai's advantageous location, give it more advantages than countries such as Malaysia, Japan, and Singapore. Chen et al (2016) focused on trade competition patterns of the global LNG trade by showing networks developing from 2005 to 2014. The study revealed that some European countries, such as Spain and Belgium, chose to re-export their LNG because of the reduced demand caused by their weak economies.…”

Section: Literature Reviewmentioning

confidence: 99%

Russian Federation–East Asia Liquefied Natural Gas Trade Patterns and Regional Energy Security

2019

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The views expressed in this paper are the views of the author and do not necessarily reflect the views or policies of ADBI, ADB, its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.

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Section: Literature Reviewmentioning

confidence: 99%

Russian Federation–East Asia Liquefied Natural Gas Trade Patterns and Regional Energy Security

2019

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“…This assumption is not perfectly accurate in today's LNG market, which still contains many long-term contracts and oil-indexed LNG pricing in Asia. But the assumption of perfect competition is more accurate for future years, because the LNG market is moving towards more competitive gas-on-gas markets with shorter-term contracts (Shi, 2016); (Chen et al, 2016). The weekly LNG consumption at each consumer node is fulfilled with (2), where the duration of the shipping route is taken into account with the delay factor dur.…”

Section: Figure 1 -Model Of Lng Production and Consumption Nodes And mentioning

confidence: 99%

“…Several previous works have investigated global trends in LNG trade. Using a network model, Chen et al find the global LNG market to become more competitive, since more suppliers have entered the market in recent years (Chen et al, 2016). By applying a Cournot model to the global LNG trade, Growitsch et al investigate the impacts of short-term LNG disruptions on consumer prices in different LNGimporting countries (Growitsch et al, 2013).…”

Section: Introductionmentioning

confidence: 99%

Impact of Trends in Global LNG Supply and Demand on the European Gas Market in 2030

Eser¹,

Chokani²,

Abhari³

2019

GPPS Zurich19

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The increased imports of liquefied natural gas (LNG) are one possible way for the EU to diversify its natural gas supply by 2030. However, as LNG is a globally traded commodity of limited abundance, other consumers' trends in LNG demand will impact the price and availability of LNG in Europe. This work couples a global LNG trade model to a high-resolution gas system model of the real European gas network to quantitatively assess the impact of possible different trends in global LNG supply and demand on the European gas market in 2030. It is found that by 2030, LNG from USA replaces Qatari LNG in the European gas market, while Qatari LNG supplies the increasing LNG demand in Asia. Due to the limited abundance of LNG supplies in 2030, the market penetration of Russian pipeline gas in Europe is found to increase by 50% compared to 2016. Further, it is found that the market share of LNG in the European gas market of 2030 is highly price sensitive, with a 10% reduction in LNG price leading to a doubling in market share. Such a 10% reduction in LNG prices is found to occur, if LNG demand in Asia is half that which is currently anticipated. This underlines the dependence of an LNG supply in Europe to trends in other markets of the world. Therefore contrary to general opinion, a strategy that relies on increased LNG imports is not necessarily politically less risky than a strategy that relies on increased imports of pipeline gas.

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“…LNG is the process of changing natural gas to liquid for the more efficient transportation [18]. LNG is a fast-growing method of monetising natural gas and is the cleanest-burning hydrocarbon [19][20][21][22][23]. The LNG value chain begins upstream with exploration and production and then moves on to the midstream with processing and transportation and then finally into the downstream where it is liquefied and then eventually regasified and distributed to consumers [10,24].…”

Section: Lng Supply Chainmentioning

confidence: 99%

A techno-economic study of shipping LNG to Indonesia from US, Australia, and Qatar by LNG carrier

2019

Maritime Safety International Conference (MASTIC 2018)

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With respect to the Indonesian natural gas supply and demand, the margin between combined supply and the next 15 years demand results to a negative supply after the year 2019. It is mandatory for the government to increase the supply either by importing natural gas from the other countries. From Indonesian location, there are a few countries which have abundant resources of natural gas in different locations as potential exporters. For this paper, we developed a model that estimates the cost of shipping one MMBTU of LNG on a per-voyage basis from three natural gas producer countries which are the US, Qatar, and Australia. The shipping cost of the project is calculated by summing up the port and passage fees, LNG carrier hire cost and fuel oil cost. This analysis demonstrates that shipping from Australia has the lowest cost with 0.43 USD / MMBtu. The shipping costs from Qatar and the US are 1.03 USD/MMBtu and 3.16 USD/MMBtu, respectively. Based on the analysis, the shipping cost is mostly influenced by the fuel cost compared to other costs. The pure-gas burning propulsion system is also feasible to be used. The cost-benefit of using boil-off gas generated rather than oil fuel as a primary fuel should be studied further to give more comprehensive analysis.

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Competition pattern of the global liquefied natural gas (LNG) trade by network analysis

Cited by 61 publications

References 24 publications

Russian Federation–East Asia Liquefied Natural Gas Trade Patterns and Regional Energy Security

Russian Federation–East Asia Liquefied Natural Gas Trade Patterns and Regional Energy Security

Impact of Trends in Global LNG Supply and Demand on the European Gas Market in 2030

A techno-economic study of shipping LNG to Indonesia from US, Australia, and Qatar by LNG carrier

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