LNGINDUSTRY | September 2016

September 2016

www.lngindustry.com

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ISSN 1747-1826

CONTENTS
SEPTEMBER

2016

41 Refine the design

03 Comment

Johnathan Green, UK, and Suba Sivandran, Singapore,

BMT Fluid Mechanics, highlight the role that computational
fluid dynamics and wind tunnel testing can play in optimising
the design of an FLNG unit.

05 LNG news
12 LNG outlook: Asia in focus

45 LNG at sea

Mark Adeosun, Douglas-Westwood, UK, provides a forecast for the

global LNG market between 2017 and 2021, with a particular focus
on Asia.

Benjamin Mauries, Saipem, France, looks at the development

of offshore regasification and liquefaction technologies.

49 Deep blue sea

12

Gunnar Arnesen, Kjell Hagatun and Siri Simenstad,

Aker Solutions, Norway, present a deep cooling water intake
solution that can help to increase the efficiency of FLNG
facilities.

LNG outlook:

Asia

in focus

53 Shrewd selection

Kevin Niebergall, CGIS, Canada, explains the importance

of selecting the right Severe Service Valve (SSV) for LNG
applications.

Mark Adeosun, Douglas-Westwood, UK,

provides a forecast for the global LNG
market between 2017 and 2021, with a
particular focus on Asia.

57 The devil is in the detail

n recent years, domestic gas production in many consumer nations

has declined, prompting a search for alternative sources of gas
supply. Furthermore, in many countries, gas demand is forecast
to increase substantially as a consequence of population growth and a
shift in the energy mix from coal to gas. Consequently, LNG will be a key
solution to ensuring future gas supply for many nations. However, due to
sustained low oil and gas prices, there have been concerns regarding the
economic viability of many LNG projects. Asian LNG demand is expected

Shawn Statham, Pentair Valves & Controls, explains why valve

design and application is critical to developing a safe LNG
project.

61 Meeting marine demands

13

12
LNG_September_2016_12-17.indd 12

01/09/2016 16:14 LNG_September_2016_12-17.indd 13

01/09/2016 16:14

Duncan Gaskin, Parker Bestobell Marine, UK, looks at how the

wider adoption of LNG as a marine fuel is leading to demand
for high pressure cryogenic valves.

18 Step on the gas

Andrea Delli Zotti, TGE Marine Gas Engineering, Germany,

explains how the need to comply with emissions
regulations has led to a growing market for LNG fuel gas
systems on board vessels.

30 Cruise control

Andrea Cogliolo, RINA Services, Italy, explains how the

cruise ship industry is leading the way in the adoption of
LNG as a marine fuel.

Applied Cryo Technologies

(ACT) is an industry leading
specialist in the design
and manufacturing of
vacuum insulated, cryogenic
containers and vaporisation
equipment used in the
storage, transportation,
and distribution of cryogenic
gases.

LNGINDUSTRY | September 2016

Bjrn Nygrd, Wrtsil Corp., Finland, looks at methods for

handling boil-off gas on board LNG-fuelled ships.

September 2016

33 Idea to operation

Bob Watson and Rama Challa, Matrix PDM Engineering,

USA, offer a step-by-step approach to the development of
small scale LNG facilities.

Focused on providing
complete turnkey
solutions that meet
the challenges of an
ever-evolving global market.
Listen. Design. Deliver.
www.appliedcryotech.com

38 Painting it green

Michael Hindmarsh, AkzoNobels Marine Coatings Business,

International, explains how effective hull coating selection
can help to increase the efficiency of LNG carriers.
www.lngindustry.com
LNG_September_2016_OFC.indd 1

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02/09/2016 10:13

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An audit certificate is available on request from our sales department.

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CALLUM OREILLY EDITOR

COMMENT
A

recent report from the US Energy Information

Administration (EIA) suggests that declining
LNG imports in Japan and South Korea have
been partially offset by increasing imports in other Asian
countries.1
The EIA notes that LNG shipments into Asias two
mature markets, as well as China, averaged 18.2 billion ft3/d
in 2015, a 5% decline on the previous year. However,
significant growth has been seen in emerging Asian LNG
markets, with Pakistan, Thailand, Malaysia and Singapore
importing a combined total of 7.36 million t last year,
according to the International Group of LNG Importers
(GIIGNL).2
Thailand is currently leading the way for the emerging
Asian markets. The country doubled its LNG imports to
2.7 million t last year, driven by a surging demand for
natural gas as its own natural resources decline. The CEO
of Thailands national oil company, PTT, has confirmed
that the country is ready to take advantage of the current
LNG buyers market. In a recent interview with Bloomberg,
Tevin Vongvanich revealed that he plans to sign long-term
agreements with several LNG suppliers by the end of
this year as the country aims to add approximately
3 million tpy of committed volumes.3 The company is
increasing the capacity of its Map Ta Phut LNG Terminal
to 10 million tpy this year, while plans are in place for this
figure to eventually rise to 11.5 million tpy in 2019. A second
receiving terminal has also been mooted.
Meanwhile, Pakistan was a significant entrant to the
LNG market last year, with the opening of the Engro Elengy
Terminal in Port Qasim, which is using Excelerate Energys

James Little

james.little@lngindustry.com

Editor

stephen.north@lngindustry.com

Website Manager

Editorial Assistant

Website Editor

David Rowlands

Advertisement Director
Rod Hardy

rod.hardy@lngindustry.com

Advertisement Manager
John Baughen

john.baughen@lngindustry.com

3. SUWANNAKIJ, S., JORDAN, T., and MURTAUGH, D.,

Thailand embarking on LNG shopping spree as glut
cuts prices, Bloomberg, (25 August 2016).

Stephen North
Tom Fullerton

david.rowlands@lngindustry.com

2. The LNG Industry in 2015, International Group of

Liquefied Natural Gas Importers (GIIGNL).

Production Manager

Callum OReilly

callum.oreilly@lngindustry.com

1. As Japan and South Korea import less LNG, other Asian

countries begin to import more, US Energy Information
Administration, (24 August 2016).

tom.fullerton@lngindustry.com

Callum OReilly

callum.oreilly@lngindustry.com

Digital Editorial Assistant

Angharad Lock

angharad.lock@lngindustry.com

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Managing Editor

Exquisite FSRU. Following on from the success of this

terminal, BW Group recently announced that it has signed
a 15-year agreement with Pakistan GasPort Ltd to provide
regasification services utilising a new FSRU for a second
terminal in the country, due to be delivered in 4Q16.
The terminal will have a peak regasification capacity of
750 million ft3/d (more information about this project can be
found on p. 8 of this issue).
Aside from the emerging Asian markets, LNG demand is
expected to grow in China, India and Taiwan. In this months
regional report, starting on p. 12, Douglas-Westwood
(DW) predicts that US$38 billion will be spent on import
facilities worldwide between 2017 and 2021 a rise of 25%
compared with the 2012 2016 period. Although Asias
share of global expenditure on regasification facilities
will fall from the whopping 92% recorded during the
2012 2016 period (on the back of surging demand in Japan
and South Korea), DW still expects the continent to account
for 66% of regas expenditure up to 2021, driven by China
and India.
While we can expect a stormy ride in the near future
as LNG oversupply threatens to persist beyond 2021, DW
believes that LNG demand from other Asian countries will
ensure a demand-supply balance in the long-term.

TRI-CON
SERIES FOR
CRYOGENIC
APPLICATIONS

WWW.ZWICK-ARMATUREN.DE

LNGNEWS
Gibraltar

South Korea

Shell inks LNG deal with government of Gibraltar

AG&P invests in GAS Entec

he government of Gibraltar and Shell have signed

an agreement for the supply of LNG for use in power
generation in Gibraltar.
Under the agreement, a small regasification unit will be
constructed in Gibraltar, which will be operated by Gasnor, a
100% Shell-owned subsidiary. The unit will be used to receive,
store and regasify LNG for use in Gibraltars adjacent gas-fired
power plant. The unit will also include a berth for a small LNG
carrier that will supply the LNG at night, minimising disruption
to the neighbouring port, airport and housing estates.
According to a joint statement, there is also potential
for LNG bunkering operations in the future, following the
appropriate environmental assessments and safeguards.
Maarten Wetselaar, Director of Shell Integrated Gas,
said: Gibraltar has led by example and put itself at the
forefront of a cleaner, flexible energy system that will reliably
and consistently deliver power to the people of Gibraltar.
This project will draw on Shells combined expertise across
50 years of excellence in innovation, technology and safety.
It proves once again that small scale projects can deliver big
benefits and bring more clean-burning gas to the markets that
want it.
Construction of the regasification unit is expected to begin
towards the end of this year, with commissioning and delivery
of first LNG expected to take place ahead of the start-up of the
power plant, expected during 2H17.

tlantic, Gulf and Pacific Co. (AG&P) has announced

a major investment in GAS Entec an engineering
and design firm based in South Korea, dedicated to both
small and mid scale LNG applications.
Together, the companies offer onshore and floating
products for both the distribution and use of LNG,
including storage, regasification, LNG fuel bunkering,
LNG-fuelled power solutions, next-generation mooring
structures and cold storage applications.
GAS Entec has designed and built a floating
regasification unit (FRU) operating successfully in Bali,
Indonesia. The company also engineered critical systems
in the first LNG bunker vessel ever built in North America
that will serve the port of Jacksonville, Florida.
The CEO of GAS Entec, Kwak Chong-Ho, said: We
are privileged to join forces with AG&P. Together, we
will deliver the full design, engineering, construction and
assembly, including the integration of sub-components
such as cargo handling and control systems for various
small and mid scale LNG vessels. Operating as an
integrated, one-stop-shop, we will bridge the critical
gap in LNG distribution and its applications globally.
We remain an engineering company that can work with
any customer, but the partnership with AG&P allows
certainty, speed and commercially reasonable terms for
our customers.

USA

Teekay delivers Oak Spirit to Cheniere Energy

eekay has announced that the worlds second

M-type, Electronically Controlled, Gas Injection
(MEGI) Type LNG carrier, the Oak Spirit, has been
delivered to Cheniere Energy.
Oak Spirit joins its sister vessel, the Creole Spirit,
which was successfully delivered to Cheniere Marketing
on 29 February 2016.
The Oak Spirit has already commenced its maiden
voyage under the command of Captain Matthew
Sumner. Teekay confirmed that the vessel is now

operating under its five-year fee-based charter

contract to Cheniere Energy, lifting volumes from
the Sabine Pass LNG export facility in Louisiana, US,
alongside the Creole Spirit.
Teekay currently has seven additional vessels of this
type under construction (at various stages) at Daewoo
Shipbuilding and Marine Engineerings shipyard in
South Korea, including the Torben Spirit. Two further
LNG MEGI newbuildings will also be constructed at the
Hyundai Heavy Industries shipyard.

SEPTEMBER 2016

LNGINDUSTRY

LNGNEWS
Italy

RasGas delivers LNG to FSRU Toscana

asGas Co. Ltd has announced that it has shipped its first
cargo of LNG to the floating storage and regasification
unit (FSRU), FSRU Toscana, located in Italy.
The cargo was delivered by the Al Thakhira LNG carrier in
August 2016 to a new customer, DufEnergy Trading SA. Since
entering the LNG market in late 2012, DufEnergy has been
delivering a number of LNG cargoes to its customers, while
diversifying its LNG supply portfolio.
Khalid Sultan R. Al Kuwari, RasGas Chief Marketing &
Shipping Officer, said: RasGas looks forward to continuing
our support of DufEnergy in meeting the growing demand
in Italy and throughout Europe for cleaner energy in the
form of LNG. The arrival of our LNG cargo at FSRU Toscana
represents another positive development in RasGas global
operations.
Jean-Christian Heintz, Head of LNG at DufEnergy, added:
Receiving this cargo at the FSRU Toscana regasification
terminal is an important milestone, as LNG is a key source of
supply to the Italian natural gas market.

Norway

Hegh LNG signs agreements for FSRU

conversion project

egh LNG Holdings Ltd has announced that it has signed

agreements with both Moss Maritime (engineering) and
Wrtsil Oil and Gas (EPCIC regas) for its first floating storage
regasification unit (FSRU) conversion project, including orders
for critical equipment with long lead time.
Ordering this equipment in advance will allow the
company to decrease its conversion schedule from 18 months
to 12 months, meaning that the planned delivery date for the
FSRU conversion project is now the end of 2017.
Sveinung J. S. Sthle, the President and CEO of
Hegh LNG, said: By doing FSRU conversions, Hegh LNG
can capture additional business opportunities with start-up
at the end of 2017 and in 2018, which our FSRU newbuilding
programme cannot meet. Our strong in-house technical
expertise and our ability to order critical equipment with
limited risk due to our newbuilding programme, enables us
to take advantage of the strong fundamentals in the FSRU
segment.

News Highlights
NEWS HIGHLIGHTS

XX SK Shipping
contracts WinGD
XX DNV GL undertakes new study
on EU LNG market
XX Tellurian Investments appoints Meg Gentle as President
and CEO

Visit our website for more news: www.lngindustry.com

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LNGNEWS
Finland

Gasum opens Finlands first LNG filling station

for heavy duty vehicles

asum has announced the opening of Finlands first LNG

filling station serving heavy duty vehicles and enabling
the distribution of biogas. The LNG filling station was opened
at Helsinkis Vuosaari Harbor on 29 August 2016.
The Vuosaari filling station is part of the expansion of the
road fuel gas market. The next gas filling stations for heavy duty
vehicles will be opened in autumn 2016 in Turku and throughout
next year in Jyvskyl and Vantaa. Gasum is also implementing
several other gas filling station projects around Finland.
The LNG filling stations currently under construction have
been granted EU co-funding to facilitate the implementation
of the objectives of the pan-European TENT Core Network in
countries including Finland.
Jussi Vainikka, Business Development Manager, Biogas,
from Gasum, said: The demand for environmentally friendly
transport services is increasing. The growing supply of gas-fuelled
vehicles and the new filling stations will further improve the
opportunities to switch to road fuel gases. Its great that vehicle
manufacturers are also actively involved in this development in
the Finnish market as well and that Iveco, Scania and Volvo are
offering gas-powered vehicles for the Finnish market. Gasum is
strongly committed to the development of gas vehicle use, and
one element in this is the construction of around 35 new gas filling
stations.

DIARY DATES

20 - 23 September 2016

CWC World LNG & Gas Series: Asia Pacific

Summit
Singapore
asiapacific.cwclng.com

Pakistan

BW to provide Pakistan with FSRU

W Group has signed a 15-year agreement with Pakistan

GasPort Ltd (PGPL) to provide regasification services
utilising a floating storage regasification unit (FSRU) for a
second LNG terminal in Pakistan.
BW said that the FSRU is scheduled for delivery in 4Q16. The
vessel will have a storage capacity of over 170 000 m3 and a peak
regasification capacity of 750 million ft3/d.
The Managing Director of BW LNG, Yngvil sheim, said: We
are proud to be selected as the FSRU supplier for the Pakistan
project [...] BW is a leading player in the LNG sector, and we will
leverage on our many years of experience to support Pakistan
as they build their second LNG terminal. We look forward to a
strong partnership with Pakistan GasPort and to delivering our
commitments on time and at the highest quality.
The Chairman of PGPL, Iqbal Z. Ahmed, added: We are
delighted to be working with BW on this vitally important
infrastructure project, which is the result of policies aimed at
promoting investment and the renewed global faith in our
countrys economy.
This landmark project will reduce Pakistans gas deficit by
30%, ensure fuel for 3600 MW of new power generation plants
being constructed in Pakistan to reduce power outages by 80%,
and save some US$1.5 billion in annual foreign-exchange savings.
BW Group said that the project will be commissioned by
30 June 2017 at Port Qasim, Karachi.

27 - 28 September 2016

26 - 28 October 2016

Singapore
www.tankstorageasia.com

Singapore
www.gasasiasummit.com

Tank Storage Asia

Gas Asia Summit & Exhibition

20 - 23 September 2016

11 - 13 October 2016

07 - 10 November 2016

London, UK
https://energy.knect365.com/
lnggc-london

Chicago, US
www.hhpsummit.com

Abu Dhabi, UAE

www.adipec.com

LNGgc

8 LNGINDUSTRY

SEPTEMBER 2016

Natural Gas for High Horsepower Summit

ADIPEC

LNGNEWS
The Netherlands

Finland

Gate terminal opens third berth

ate terminal and its shareholders Gasunie and
Vopak have announced that the LNG terminal at the
Maasvlakte in Rotterdam has been expanded to include a
third berth.
The LNG terminal also has infrastructure in place for the
loading of small LNG vessels, which will enable distribution
to LNG terminals in other North Sea and Baltic ports where
large LNG tankers are prohibited to deliver directly due to
their draught.
In conjunction with LNG bunker vessels, the new berth
will also make it easier for ocean-going vessels to fill up
with LNG in Rotterdam in the future. The use of LNG as a
maritime fuel is being encouraged by the EU, the Dutch
government and the Port of Rotterdam because of its
environmentally-friendly properties.
The Port of Rotterdam has developed a new 255 m
long, 150 m wide and 75 m deep Yukon Harbour adjacent to
Gate terminal. The third berth of Gate terminal is built on this
new quay wall and it can handle vessels of up to 180 m in
length. The Port of Rotterdam is encouraging the use of LNG
as a maritime fuel by offering a discount on harbour dues.
As launching customer, Shell has reserved part of the
capacity for the loading of small vessels including a bunker
vessel that has been ordered. This combination will enable
vessels in Rotterdam to be efficiently provided with LNG
fuel in the near future.

Wrtsil to supply LNG satellite terminal

rtsil has announced that it has signed a turnkey
contract to construct an LNG receiving terminal
in Raahe, Finland. The company signed an engineering,
procurement, construction and installation (EPCI) contract
with energy company, Raahen Voima.
Wrtsil will provide two LNG vacuum insulated storage
tanks, which will have a combined net volume of 1400 m3.
The company will also provide a regasification system, truck
loading and unloading functions, as well as all necessary civil
structures. Wrtsil claims that the facility will be operational in
April 2018.
The terminal will be supplied with LNG from the
Tornio Manga facility Wrtsils first LNG terminal
installation in Finnish Lapland. The fuel will be delivered via
trucks. The SSAB Raahe steel mill will be the main user of the
Raahe terminals natural gas.
The CEO of Raahen Voima, Pekka Inkala, said: We wanted
a modern LNG terminal that utilises reliable technology.
Wrtsils technology fits our need and they have experience
as an EPC provider.
Timo Mahlanen, Senior Business Development Manager,
Wrtsil Energy Solutions, added: We are excited to be
chosen as the EPC contractor for this LNG project. LNG not only
provides a reliable source of fuel, but also allows customers
to produce their products with a smaller impact on the
environment.

China

Chevron signs LNG SPA with ENN

hevron U.S.A. Inc. a wholly owned subsidiary of

Chevron Corp. has signed a binding LNG sales and
purchase agreement (SPA) with ENN LNG Trading Co. Ltd for
the delivery of LNG to China from Chevrons global supply
portfolio.
Under the terms of the agreement, Chevron will provide
ENN with up to 0.65 million tpy of LNG over a 10-year period.
Deliveries are expected to commence in ether 2018 or 1H19.

10 LNGINDUSTRY

SEPTEMBER 2016

Mike Wirth, Executive Vice President, Chevron Midstream

and Development, said: Chevrons commitment to gas is
clear. Weve been in the natural gas business for more than
100 years, and were positioned to become one of the top LNG
suppliers in the world.
This SPA further demonstrates our work to expand our
customer base, our strong customer relationships and our
commitment to partnerships around the world.

12

LNG outlook:

Asia

in focus
Mark Adeosun, Douglas-Westwood, UK,
provides a forecast for the global LNG
market between 2017 and 2021, with a
particular focus on Asia.

n recent years, domestic gas production in many consumer nations

has declined, prompting a search for alternative sources of gas
supply. Furthermore, in many countries, gas demand is forecast
to increase substantially as a consequence of population growth and a
shift in the energy mix from coal to gas. Consequently, LNG will be a key
solution to ensuring future gas supply for many nations. However, due to
sustained low oil and gas prices, there have been concerns regarding the
economic viability of many LNG projects. Asian LNG demand is expected

13

to be impacted in the short-term by slower than expected

economic growth and by an increase in nuclear power
generation in Japan. This is likely to result in oversupply in
the LNG market persisting beyond 2021.
Despite these near-term concerns, the long-term
outlook is largely positive. LNG demand from other
countries in Asia will ensure a demand-supply balance
over the long-term. The Chinese governments
commitment to switching from coal to gas power
generation to reduce greenhouse gas (GHG) emissions is
expected to continue the construction of hundreds of
coal-fired plants was recently halted. Furthermore,
economic growth forecasts for India remain strong the
government aims to narrow its domestic demand-supply
gap by using LNG.

Figure 1. CAPEX on LNG facilities in Asia 2012 2021 (source:

Douglas-Westwood, World LNG Market Forecast 2017 2021).

Global market overview

CAPEX on LNG facilities is expected to increase over the

forecast period of 2017 2021. This is primarily due to
a number of large North American liquefaction projects
currently under construction. Total expenditure on LNG
facilities is expected to reach US$284 billion over the
forecast period an increase of 50% compared to the
2012 2016 period.
The expenditure outlook over the forecast period is
one of fairly steady growth. However, 2017 and 2018 are
likely to be weaker years, due to reduced project
sanctioning as a result of current market oversupply,
which has largely influenced LNG spot prices. In Asia,
average LNG prices in June 2016 were 69% lower than
June 2014. Despite reduced expenditure in the near-term,
spending is expected to increase in the latter years of the
forecast period. This will be supported by continued
investment in North America and an expected resurgence
in the LNG carrier market.
Over the forecast period, there will be a regional swing
in investment from Australasia to North America, with
liquefaction projects currently under construction in
Australasia expected to reach completion by 2017.
Projects that were expected to trigger a second phase of
investment have either been delayed or cancelled.
Liquefaction projects will account for the largest
proportion of total expenditure, reaching US$192 billion
over the 2017 2021 period. This represents an increase of
42% compared with the 2012 2016 period.
Import facilities will represent 14% of total expenditure
over 2017 2021. Overall, a total of US$38 billion is
forecast to be spent over the next six years a rise of 25%
compared with the 2012 2016 period. Many of these
projects will be built in Asia, as well as countries without
import capability, enabling access to the global LNG
market.
Expenditure on LNG carriers will account for 19% of the
global total, reaching US$54 billion over the forecast
period. Due to the current lack of carrier orders,
Douglas-Westwood (DW) expects that approximately 164
potential additional units
totalling US$33 billion will
be required towards the end
of the forecast period. The
majority of these potential
units are expected to be
required to support
additional export capacity to
be installed in
North America.

Southeast
Asia in focus

Figure 2. Global LNG expenditure 2012 2021 (source: Douglas-Westwood, World LNG Market
Forecast 2017 2021).

14 LNGINDUSTRY

SEPTEMBER 2016

Asia is set to marginally

increase its share of global
LNG CAPEX from 30%
during the hindcast to 33%
over the forecast period. The
construction of LNG carriers
is expected to account for
a large proportion of the
increase in expenditure,

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Untitled-3 1

16/12/2015 15:09

Figure 3. Liquefaction expenditure in Asia will be focused on projects in Indonesia and Malaysia.
representing 57% of total expenditure in Asia over
2017 2021. This includes additional carriers expected to
be added to the fleet over the forecast period to satisfy
increased export capacity particularly in North America.
DW expects all newbuild carriers yet to be ordered to be
constructed in Asian shipyards over the forecast period.
Over the 2012 2016 period, Asia accounted for 92% of
global expenditure on regasification facilities. This was
largely driven by South Korea and Japan, with imports
increasing following the nuclear shutdown in the aftermath
of the Fukushima incident.
Asias share of global expenditure on regasification
facilities is expected to decline significantly to 66% over the
2017 2021 period. Regions such as Africa, Latin America,
and Western Europe are expected to see a significant
increase in spending. Asias total expenditure is forecast to
decline marginally by 2% when compared with the
2012 2016 period. This is partly due to weaker demand for
LNG in Japan, following the re-start of its nuclear power
stations. Notably, Japans Ministry of Finance has reported
that LNG imports declined by 6.2% during the fiscal year
ending in March 2016.
Expenditure on import projects over the forecast period
is expected to be driven by China and India, due to
increasing global pressure to reduce emissions. Onshore
regasification facilities currently under construction in
China include ENN Energys 3 million tpy Zhoushan LNG
facility, due to commence operations in 2018. In India,
Petronet LNG is planning to expand the capacity of its
Dahej regasification terminal to 15 million tpy by the end of
2016. Indonesia is also expected to contribute to

16 LNGINDUSTRY

SEPTEMBER 2016

expenditure on import projects over the forecast

period, with several projects currently at the concept
stage.
Liquefaction expenditure is expected to account for
13% of the regions total expenditure over the
2017 2021 period, compared with 7% over
2012 2016. Expenditure will be focused on projects in
Indonesia and Malaysia, including the second, third
and fourth trains for the Sengkang facility in Indonesia,
and the ninth train for the Malaysia LNG Sdn Bhd
(MLNG) facility in Malaysia. The third train for BPs
Tangguh facility in Indonesia is also expected to
become operational in 2020. In recent years, the
region has also diversified towards the use of floating
liquefaction facilities as a cost-effective, short-term
solution for the processing of natural gas.

Conclusion

In the near-term, a stormy ride is expected for the

LNG industry as low prices limit investment in capital
intensive liquefaction projects. However, the need to
meet rising domestic demand remains a compelling
driver for the continued investment in these capital
intensive projects. The long-term potential of the
LNG industry is evident. Natural gas is expected to
play an increasingly important role in meeting the
worlds energy demand, with countries seeking to
diversify their energy supply. Furthermore, delays in
committing to new nuclear capacity and the limitations
of renewable technology in baseload application will
be key factors for increased LNG demand.

THAT WAS A SAMPLE OF

SEPTEMBER ISSUE

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