LNG Strengthens Gas Supply Outlook – LNG is Hot

LNG is HOT: Opportunities, Challenges and Strategies as a Vehicle Fuel
- Brussels, Belgium

The current level of global trade in LNG, according to the International Energy Agency, is anticipated to nearly double by 2020 and, potentially, triple by 2030 and beyond so the market for liquefied natural gas vehicles (L-NGVs) should strengthen concurrently as more countries incorporate LNG into their energy strategies. Noting this strong growth in LNG trading, EU Commissioner for Energy, Andris Piebalgs said on 1 October 2009 at the Eurogas Annual Policy Conference in Brussels, “With respect to the diversification of (natural gas) supply sources, the past five years have seen major progress. European companies have reacted to the decline in indigenous gas sources by embarking on new import pipelines and LNG terminals. In particular LNG terminals have opened up the potential for a much more flexible and competitive gas market. With further LNG terminals planned or under construction, such enhanced flexibility in the gas supply is likely to benefit also markets which are still dominated by few gas suppliers.”

The European Commission is playing its role to address emissions problems at port facilities and to incorporate LNG supply into the seaport and marine infrastructure.  The Maritime Gas fuel Logistics (Magalog), with Norwegian energy giant GASNOR in the lead, is attempting to establish an LNG supply chain in the Baltic region. The ports of, Bergen (Norway), Göteborg (Sweden), Stockholm  (Sweden), Lübeck (Germany) and Swinemünde (Germany) all are planning to set up terminals with LNG filling stations for freight ships and ferries. Lübeck is scheduled to be the first to have one, by 2012.

Jorgen Henningsen, former principal adviser to the Director General of the European Commission  Directorate General Energy & Transport (DG Tren) and currently the Senior Adviser on Energy and Climate Change at the European Policy Center in Denmark added, in remarks to Clean Fuels Consulting, “Expanding LNG import facilities in Europe add to the existing advantages of natural gas as a motor vehicle fuel: It is less CO2 intensive, it is cheaper than conventional fuel and much cheaper than other alternatives such as liquid biofuels, and it provides fuel diversification. Any concern about security of supply must now evaporate.”

Mr. Henningsen was the principal author of the landmark European Commission 2003 publication, “Market Development of Alternative Fuels,” which indicated that natural gas should replace as much as 10% of the transportation sector fuel by 2020.  Mr. Henningsen will be the keynote speaker at the upcoming workshop, “LNG is HOT: Opportunities, Challenges and Strategies as a Vehicle Fuel,” on the 3-4 December 2009 in Brussels where he will share his in-depth views about the role of LNG in the worldwide energy supply and demand chain.