A Shift in Focus for the Global LNG Business
Capital expenditure (Capex) on Liquefied Natural Gas (LNG) facilities has risen substantially in recent years, due mainly to the growth in the global economy which has been driving demand for natural gas. This trend is expected to continue with total spending on global LNG facilities expected to reach $241bn between 2016 and 2020. This represents a 34% increase compared to the preceding five-year period.
Global LNG Capex has been dominated by Australasia and Asia in recent years, however, over the forecast period all regions are expected to experience positive growth, except for Australasia where the LNG construction boom looks to be coming to an end, as the country prepares to enter a new production phase. The US now has vast potential as an LNG exporter. However, the approval process for onshore projects remains slow and will limit the growth rate of LNG expenditure in the region over 2016-2020. In the US there are 20 LNG export terminals proposed for the future. Of this 20 proposed, 11 export terminals were originally planned for start-up between 2016 and 2020. However, DW has taken a conservative view and anticipates only six will be built over this period. DW expects North America to become a significant market player by the end of the forecast period.
The global LNG Capex outlook to 2020 is characterised by this regional change in focus, in addition to a weaker projected year for expenditure in 2016. This is a result of a pause in commitments to new LNG projects as demand growth in Asia has weakened and gas prices have slumped.
By far the largest proportion of the total spend will be attributed to liquefaction projects, where the gas is cooled and condensed to a much smaller size. Worldwide spending in this segment is forecast to total $160bn over the next five years, an increase of 33% over the hindcast period total.
The World LNG Market Forecast 2016-2020 examines trends in the LNG market by region and facility type, supported by analysis, insight and industry consultation. Areas of focus include:
•Drivers & indicators – a review of the factors influencing the LNG market, including growing global energy demand; environmental concerns and sustainable energy; oil & gas prices; majors’ production profiles; E&P costs, local content and geopolitics; drilling & production; diversification of supply and unconventionals.
•Overview of the LNG industry – the LNG chain, major players, contracting practices, spot cargoes and current pricing.
•Supply & demand – outlook, trade flows, future pricing, applications, regional gas & LNG markets and unconventional gas: threat or a feedstock for LNG?
•Supply chain & contractors – EPC contractor market share analysis, construction, liquefaction technology market and regasification.
•Transportation – LNG carrier fleet and vessel owners, designs for containment systems & propulsion; plus a review of shipyards and shipbuilding.
•Offshore LNG – liquefaction and regasification terminals.
•Regional analysis – comprehensive examination, analysis and ten-year view of the market, with historic data covering the period 2011-2015 and forecast data for 2016-2020. Capital expenditure by facility type (carrier, import and liquefaction) and region. Liquefaction market in terms of Capex and/or capacity (new and cumulative) by region, new developments and expansion projects, components and work scopes. LNG carrier market in terms of expenditure and newbuild units by region. Import market in terms of Capex and/or capacity by region, new developments and expansion projects, components and work scopes.
Why purchase the World LNG Market Forecast?
DW’s market forecasting is trusted by sector players worldwide, with clients including the world’s top-10 oil & gas companies, top-10 oilfield services companies and top-10 private equity firms.
The report is essential for design engineering houses, engineering, procurement and construction contractors, technology providers, shipping companies, LNG vessel owners, shipbuilders, oil & gas operators, gas utilities, financial institutions and government agencies & departments wanting to make more informed investment decisions.
Our proven approach includes:
•Unique and proprietary data – updated year-round from published sources and insight gained from industry consultation.
•Detailed methodology – the report uses research from DW’s proprietary ‘World LNG Projects Database’, an in-house information system exclusive to DW. Our global analyst team is involved in the gathering and analysis of the LNG market data through primary research and professional networks. A project-by-project review of development prospects drives a data-rich market model and forecast; with the timing of expenditure phased to reflect the commercial structures of likely projects.
•Market forecasts – comprehensive examination and analysis of LNG expenditure.
•Concise report layout – consistent with DW’s commitment to delivering value for our clients, all of our market forecasts have a concise layout consisting of industry background and supporting materials condensed to enable quick review with ‘speed-read’ summaries of key points throughout.