Onshore LNG infrastructure market worth $28.4bn in 2013

Thursday 23 May 2013, Amsterdam

Our analysis indicates that the onshore liquefied natural gas (LNG) infrastructure market will reach $28.4 Billion in 2013.

Natural gas is growing its share of primary energy supply around the world. This is largely due to new advances made in extracting gas from previously untapped shale and tight formations in North America. Significant offshore gas discoveries and increased spending on coalbed methane are also increasing the volume of natural gas produced worldwide. Meanwhile, the growing need for cleaner power production is driving rapidly growing economies, such as China and India, to invest heavily in more natural gas-fired power generation facilities.  Inexpensive natural gas in some markets – North America – has created an arbitrage opportunity between natural gas markets – Asia - that is fuelling an investment in LNG liquefaction and regasification infrastructure. Thus the US and Australian LNG export markets are set to add significant capacity over the coming years, while East Asia and parts of Europe will look to grow their regasification infrastructure.

The lead analyst of the LNG Market report commented that ‘It appears increasingly likely that the US Government will approve a raft of LNG liquefaction terminals for the export of natural gas; it also appears that they will approve exports of the commodity to some non-FTA countries in order to access Chinese demand. Canada is taking a similar approach and is approving a number of terminals. In Europe, the balance of power is changing with many nations diversifying away from natural gas pipeline imports by building LNG regasification terminals.’

The report contains 150 tables, charts and graphs that add visual analysis to the discussion of how onshore LNG infrastructure projects will develop and where capital investment will be deployed during the next 10 years. As part of this discussion, 10-year forecasts for capital expenditure are made. This study also provides regional market forecasts for the period 2013-2023 in terms of investment value (US$). Newly announced projects are detailed, tabulated and analysed. The two major sub-markets for spending that are discussed and forecasted are liquefaction and regasification terminals.