India:
Soaring LNG Prices Threaten India’s Energy Security
(By Policy Circle, 19 June 2024)
India’s gas-based power generators require LNG at approximately $5 per MMBtu to compete with coal-fired power. However, with current spot prices significantly higher, the economic viability of gas-based power generation is under severe strain. In May, Indian power generators resorted to purchasing five to six cargoes of spot LNG due to limited term supply, exacerbating their dependence on costly spot fuels.
India Sees 7.2% Drop in May LNG Imports as Demand Stagnates, Domestic Production Rises
(By Business World, 18 June 2024)
LNG imports dropped by 7.2% in May compared to the same period last year, as domestic natural gas production saw an increase. Moreover, despite a slight rise in total natural gas consumption to 5,708 MMSCM, just 0.3% higher than last May, the anticipated spike in gas demand due to a scorching summer did not materialise.
India Looks to Export RLNG to Bangladesh Via Pipeline
(By Financial Express, 12 June 2024)
After importing the gas from international suppliers, Indian state-run GAIL and private company H-Energy will supply RLNG to separate Bangladeshi entities. India’s H-Energy is set to sign a deal with Bangladesh’s state-owned oil, gas and mineral corporation Petrobangla, while GAIL is finalising a re-gasified LNG sales agreement with private Bangladeshi firm Dipon Gas Company.
Petroleum Board Draft Regulations Pose Challenges for Petronet LNG’s Pricing Strategy
(By NDTV Profit, 07 June 2024)
The draft regulations released by the Petroleum and Natural Gas Regulatory Board propose to extend oversight to LNG terminals, aiming to enhance regulatory control over their operations. These terminals have previously operated without significant regulation. The draft aims to bolster oversight, potentially impacting existing players while promoting sector transparency.
ADNOC Offers India Stake in its Upcoming LNG Liquefaction Terminal
(By Mint, 05 June 2024)
ADNOC has offered India a stake in its upcoming LNG liquefaction terminal at Ruwais in Abu Dhabi. If concluded, this would be India’s first equity stake in an overseas LNG terminal, adding heft to energy-security efforts by the world’s third-largest energy consumer. The development comes amid a growing partnership between India and the UAE.
China:
LNG Price Slump Speeds Shift Away from Oil for China’s Trucks
(By Energy Connects, 09 June 2024)
A slump in the price of natural gas and the prospect of a glut in the years ahead is spurring sales of trucks and ships powered by the fuel, hastening a long-term shift away from oil in China. One in three new heavy-duty trucks sold in China in April was powered by the LNG that’s more commonly used as a feedstock for electricity generation. That’s up from just one in eight a year earlier.
LNG Regasification will Dominate China’s Upcoming Midstream Projects, Finds GlobalData
(By World Pipelines, 06 June 2024)
GlobalData’s latest report reveals that 97 midstream projects are expected to start operations in China during 2024-28. Of these, the LNG segment accounts for 46 projects, followed by transmission pipelines and oil storage with 20 and 16 projects, respectively. This growth aligns with the country’s objectives to mitigate carbon emissions by transitioning from coal to gas.
South Korea:
South Korea’s East Sea Gas Development Will Not Strengthen the Country’s Energy Security
(By IEEFA, 19 June 2024)
The demand for natural gas in South Korea is expected to fall significantly by the time the East Sea gas field could become operational, due to accelerated decarbonization efforts. Therefore, investing heavily in the exploration and development of the East Sea gas field carries a high risk of stranded assets. Moreover, the recent price volatility casts further doubt on LNG’s reliability as an energy source.
Singapore’s EMA Pens LNG Cooperation Pact with Kogas
(By LNG Prime, 05 June 2024)
Singapore’s Energy Market Authority (EMA) and Kogas have signed a memorandum of understanding to collaborate in LNG procurement and supply chain management. Under the wide-ranging agreement, EMA and Kogas will share best practices and knowledge on the procurement and management of LNG supplies, as well as exchange of personnel for training and learning purposes.
Japan:
Climate Holdout Japan Drove Australia’s LNG boom. Could the Partnership Go Green?
(By The Conversation, 12 June 2024)
Without funding from Japan, many of Australia’s gas projects wouldn’t have gone ahead. Massive public loans from Japanese taxpayers are propping up Australia’s now-enormous fossil gas industry. Japan is also becoming a major gas trader and today exports more gas to other countries than it imports from Australia.
Gas Ambitions Put Asia’s Electricity Affordability at Risk
(By Eco Business, 11 June 2024)
Asian governments are welcoming this development under the banner of “transitional fuel” and “energy security,” but practical concerns are arising in how the bullish gas plans ignore the financial challenges of infrastructure development, RE potential in the region, and climate policy restrictions. Moreover, the impacts on electricity costs of Japan’s rapidly expanding regional gas portfolio should not be overlooked.
International:
Europe’s Gas Surplus Narrows as LNG Redirected to Asia
(By Reuters, 12 June 2024)
Europe’s gas storage has got off to an unusually slow start to the refill season, narrowing the record seasonal surplus inherited from last winter and boosting prices back well above the long-term average. Inventories in the EU and the UK have accumulated by just 148 terawatt-hours (TWh), or 2.1 TWh per day, since March 31, well below the prior ten-year seasonal average of 206 TWh, or 2.9 TWh per day.
US LNG to Asia for Power Generation Expected to Cut Emissions Versus Coal
(By RystadEnergy, 11 June 2024)
The value-chain emissions of LNG are lower on average than for coal-fired power generation, even when the fuel is shipped over long distances, according to new research from Rystad Energy. Natural gas that is produced and liquified in the US and shipped to Asia on return journeys of about 23,000 miles could emit up to 50% less than even the cleanest coal power plants.
Global LNG Imports Increased 1.7% in January-May
(By LNG Prime, 10 June 2024)
Global LNG imports rose by 1.7% to 169.3 million tonnes in January-May 2024, up from 168 million tonnes during the same period in 2023, according to preliminary data released by Cedigaz. The growth was driven by Asian gas demand, with LNG imports increasing by 10.37 million tonnes year-on year, up 15.3% to 115.31 million tonnes.
What Will Define LNG’s Three Phases of Market Growth?
(By Wood Mackenzie, 06 June 2024)
Wood Mackenzie identifies three phases of LNG market growth through 2030. First, continued market volatility over the next couple of years as limited supply growth amplifies risk. This is followed by a major wave of new supply, ushering in lower prices from 2026. Finally, as LNG supply growth slows, prices recover again before a new wave of LNG supply triggers another cycle of low prices in the early 2030s.
