LNG sailing the high seas
Posted: 16 July 2007
Asia's LNG demand is forecasted to reach 126 million metric tons by 2010, up 23 million tons or slightly more than 20 per cent from 2006. In addition, Asia's supply of 87 million tons is anticipated to be up by 22 million tons or close to 34 per cent from 2006.
A recent report by PricewaterhouseCoopers (PwC), states that on average, US$20-30 billion capital expenditure in LNG infrastructure is expected to be required per annum for the completion of all planned LNG projects.
However, the contracts in developed downstream markets are moving to shorter contract periods or indexation to gas prices. This creates risks with regard to cost recovery should a low price energy environment recur.
These contracts involve certain degree of risks and it is vital that industry players understand the consequences and the know-how in mitigating these risks.
Gavin Chui, PwC Partner, specialized in China Energy, Utilities & Mining said that "The implications are that the scope for greater liquidity and spot trading of LNG is expected to increase further in the coming decade".
Singapore is set to establish itself as Asian’s emission’s trading hub. It is geared to develop an LNG terminal which will churn out 3 million tonnes of gas a year when it is ready in six years. The government has also announced a special tax rate of five percent for LNG trading income for the next 10 years, and concessionary tax for emissions trading.
"We are attracting emissions trading activities as, as well as supporting industries such as carbon related consultancies, verifiers and fund managers to Singapore," says Trade and Industry Minister Lim Hng Kiang.
As concerted efforts are being made to gear up towards these changes in the regional LNG market, Asian LNG players must prepare themselves to embrace this change.
Avail Corporation is organizing the LNG Contract Risk Management Asia training course to address the core issues surrounding contract risk management in LNG.
Held on 10th & 11th September in Singapore, this 2-day intensive technical-based training course is tailored with the Asian Oil and Gas decision-maker in mind.
In line with the current developments in the LNG market it is designed to address the fundamental aspects of LNG and the LNG chain, right up to the technicalities of LNG Contract Risk and what the future holds for this energy source in Asia in the coming years.
About Avail Corporation
Avail Corporation specializes in the provision of strategic business events and sales services throughout the Asia Pacific region. Through a wide range of strategic conferences, summits, master class training, customized event planning as well as sales and marketing services, Avail Corporation's focus is on the creation of value by providing economical and efficient channels of access, helping to fill the need for modernization of business thinking by preparing government and commercial conferences to explore these modern issues.