The LNG market has gone through significant changes over the last decade and will almost certainly see further changes as use of this fuel diversifies into other markets.
Experts expect the production of LNG to increase by 10 % year on year until at least 2020. The current market supply is still over the current demand for LNG, by around 45% and with the US and Australia set to increase the supply further by 50%. This massive oversupply will have two effects, the price will reduce and in turn this will open up new potential markets for new customers.
With the US increase in LNG exports it is expected to become a global gas superpower on the same lines as Russia, Qatar and Australia. Energy security should be increased with the increased diversification of supply.
The dependence on imported gas in Europe is increasing and with Europe looking to decrease its dependence on Russia there are large opportunities for new suppliers to help in the energy supply security of Europe. Gas currently accounts for around 25% of the EU’s overall energy consumption.
The market right across the LNG supply chain is going in the right direction, however significant increases in investment are needed to make use of the benefits of diversification of energy security. Government’s looking to increase energy security should be willing to invest in small scale LNG infrastructure to reduce their dependence on individual suppliers.