LNG Capital Expenditure to Double

Marinelink.com
Friday, August 02, 2013

A strong recovery in expenditure on LNG facilities now underway worldwide driven by a growing demand for natural gas. The new eighth edition of Douglas-Westwood’s (DW) World LNG Market Forecast expects that global Capex will total nearly $228bn during the 2013-2017 period, an increase of 109% over the preceding five years.
 

The spending surge includes capital expenditure on base-load onshore and offshore fixed LNG liquefaction, LNG carriers and LNG regasification via both onshore and offshore fixed import terminals.
 

Report author, Michelle Gomez, commented, “Activity over the next five years is underpinned by huge financial commitments to both liquefaction projects and gas import facilities. The liquefaction developments will drive expenditure, with Australasia and North America playing a fundamental role in bringing new supply into the international market.

 
“Spend will peak in 2015 and decline slightly in 2016 and 2017. This is due to the surge of Australian LNG export projects reaching completion. The decline is, however, offset to some extent by significant growth in most other regions, particularly Eastern Europe & FSU, Africa and Asia. Liquefaction developments will contribute $143bn (63%) of forecast Capex. Import terminals’ spend will grow and total $50bn (22%). Gas carrier expenditure will increase at a CAGR of 25% and total $35bn (15% of forecast Capex.)”

 
Steve Robertson, DW Director, commented, “DW expect continued change in the focus areas for LNG export projects. While the Middle East remains one of the top exporters, the region will see very little expenditure within the forecast period. Australian spend however, will surge, peak and start to decline somewhat.

 
“As in many other sectors of the oil & gas industry, reducing the costs of LNG projects remains a major challenge. However, beyond the 2017 time frame of DW’s forecasts, significant potential for major growth in LNG capital expenditure can be seen, due to the large discoveries in East Africa and Eastern Mediterranean, together with increased focus on exports of US shale gas. Furthermore, the considerable potential reserves of the arctic offer a longer-term potential”
 

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Marine Power

Monitoring U.S. Troops Returning from Ebola Mission

Secretary Hagel has signed an order that validated a recommendation from the Joint Chiefs of Staff to place all U.S. military service members returning from

Korean Register to Drive LNG Fuelled Shipping

Korean Register (KR) will work alongside the Asia-Pacific Economic Cooperation Secretariat (APEC) to promote the use of LNG fuelled ships in the APEC region. APEC

Goltens Opens Houston Service Facility

Goltens Worldwide today announced the opening of its new full service facility located within two miles from the Port of Houston. Following months of planning and machinery and equipment installation,

LNG

US Natgas Exports Would Raise Energy Prices but Boost Economy

Expanded U.S. liquefied natural gas exports would mean a modest price increase for domestic consumers, but the higher costs would be offset by a boost to the economy, the U.

Korean Register to Drive LNG Fuelled Shipping

Korean Register (KR) will work alongside the Asia-Pacific Economic Cooperation Secretariat (APEC) to promote the use of LNG fuelled ships in the APEC region. APEC

Minimize the Risks, Think Cold Bonding

Cold bonding: a safer alternative to hot work Hot work required for welding, grinding and cutting operations presents certain potential hazards when conducted

News

USCG Suspends Search for the 2 Migrants

The Coast Guard suspended its search Wednesday at 3 p.m. for two missing Cuban migrants in the vicinity of Caesar Creek, Florida, to Haulover Inlet, Florida.

Danny Broad Appointed to ARENA Board

The Chair, Board members and staff of the Australian Renewable Energy Agency (ARENA) are delighted to advise that Danny Broad has been appointed by the Australian Government to the Board of ARENA.

First Libra Offshore Oil Well Confirms Discovery

Libra consortium reports that drilling the first well in the area extension of Libra, the 3-BRSA-1255-RJS (3-RJS-731), confirmed the discovery of good quality

Classification Societies

Korean Register to Drive LNG Fuelled Shipping

Korean Register (KR) will work alongside the Asia-Pacific Economic Cooperation Secretariat (APEC) to promote the use of LNG fuelled ships in the APEC region. APEC

ClassNK Certifies Ship with Air Lubrication System

ClassNK has completed the EEDI appraisal of Harvest Frost, the world’s first post-panamax bulk carrier fitted with the Mitsubishi Air Lubrication System (MALS).

CSC Launches Gas Storage Integrity Management Team

UK-based Chesterfield Special Cylinders (CSC) has launched a new integrity management team to work with owners and operators of high pressure gas storage vessels as installed in rigs and ships,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Pipelines Pod Propulsion Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1463 sec (7 req/sec)