World LNG Market

energy business insight Forecast 2016-2020

A Shift in Focus for the Global LNG Business is a result of a pause in commitments to new LNG
Chapte

The LN
r 3 : The

G Ch
LNG
Industry

ain

Capital expenditure (Capex) on Liquefied Natural Gas projects as demand growth in Asia has weakened
LNG
is form
to aroun ed when
d -161° C natur
press al gas
ure. This (-258 F is coole
° ) at d
1/600 proce atmo Stora
th of ss reduc spher ge and
comm its origin es gas ic
ercia al volum to tion, LNG Loading
to distan lly viable e, makin is then – follow
for sea g ready move ing lique
t transporta it to be
coupled markets. Stron loade d into
storage
fac-
with large g gas tion d onto Unloading
tanks

(LNG) facilities has risen substantially in recent years, and gas prices have slumped.
reserves dema Shipp LNG , dock – carrie
have explo nd ing – carrie
investmen led to itable LNG rs. or jetty rs will
t in gas significant stranded gas stand
ard conta cannot be they will of an be secur
ed to
intere shipp connect LNG term
liquefactio st and perat
ure will
inment
systems ed in as well to sever inal wher the One
LNG n. shatter as e of the
consists alloys
are empl steel; as the
tem- transporte a gas retur al unloa
ding arms generatio main uses
some prima there n arm.
nitrogen, rily of
meth
comp
leme
oyed
conta fore steel terminal’s d through LNG
is then , third n. Since of LNG
is for
insula less carbo gas prod
LNG
is a clean ethane, prop ane, with materials. nted with ining
9% nicke storage ted pipes uces powe
r
nume tanks house n
bustion hydro
carbo
ane and butan rous insula l,
Regasifica
. to the gas) than dioxide (the at least a Natural
gas
is envir ting energ main
other onme n fuel
as its
e. tion – y gene coal or green the petro is also used
fossil ntally phase rated oil for -

due mainly to the growth in the global economy

com- transition LNG will go gas for chem to
than wate fuels. As friend
lier than powe , there every
unit of (an agricu icals indus make ethan
a liquid LNG with the throu r gene is a grow e for
to 520 r, with , LNG passe gh a tion of ration ing use products. ltural fertili try and
kg/m 3
a densi
ty of is lighte heate s throu use of
vapo
gas for and the of ser), amon ammonia
. between r d by eithe gh a set targets other
comb r gas of tubes risers. to be fuels
met more enables
subst
itu- gst other
Gas Prod
430 Produc inatio
n of these burne and is emiss LNG
uctio tion rs, seaw
ater, LNG
easily. ion
grow
as a fuel
Lique
factio
n and Onsh
ore
proce
sses. or a is used th area. for transporta
press n Term Transporta Reserves Onsh heating as a way impo Its prese tion is
ure in
the
inal –
depending
tion to
Productio
ore Liqu efaction comm
purposes of sourc
ing gas
rtance
as an
nce is
grow
a majo
r
be in in both support
solution, reservoir, on the Platfo n
ercial
properties residentia for vesse
altern ing in
geolo or separ gas may eithe rm l and identifying ls; there ative for ferrie

which has been driving demand for natural gas. This By far the largest proportion of the total spend will
gical .
Associated formation
ate from r Tra the applic is also much s and
know the oil nsp ortatio
such
as conta ation resea
gas occu n as a in a iner ships s for large rch
crude
oil. Feed rs in ‘gas cap’. n . r vesse
sourc -gas for conjunctio ls
ed via
pipelines LNG
terminals
n with Reg asificat
or offsh LNG
ore prod from
either is Onsh
ore Gas
ion
uction
facilities. onshore Term
inal
Lique Consu
factio
pre-treatm n – natur Distr mption
al ibutio
ent proce gas will unde Pipelines n

trend is expected to continue with total spending on be attributed to liquefaction projects, where the gas
tamin Offsh
ants sses, rgo ore
Reserves
liquefactio that can freez removing Offsh Onsh Powe
e any con- Productioore ONS ore Gene r
or more n equipment and dama HOR
E
Term
inal ration
refrig . A cycle ge the Platfo n OFFS
heat exch erant rm HOR
s circu using E
anger lating one
valve , comp throu
cools resso gh a Indus
the gas r and LNG try
into liquid expansion Carrier
form.

© 2015

global LNG facilities expected to reach $241bn be- is cooled and condensed to a much smaller size.
LNG
FPSO
Douglas- Com
merc
Westwo ial
By purch od Floating
asing RegasificaStorage &
this docum tion Unit
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agree Figure tion Vesse
s that 28: Proce
it will World ss Diagr l
not copy am of
or allow LNG the LNG
to be Market

tween 2016 and 2020. This represents a 34% increase Worldwide spending in this segment is forecast to
copied chain Trans
in part Foreca porta
tion
or whole st 201 been
influ-
wise circula 6-2020
or other s have and
a gas price weather
ted in Kore LNG in
any form South tu Global ations subst
itute
any by fluctu n with
of the
contents per mmB enced etitio s, such
as
$7.25 nd, comp d event
Industry
without dema pecte Rus-
the writte on an oil from
and unex disruption
LNG China price n perm
LNG
fuels reactor
ing gas
r 3 : The
Korea issiond shima
tu t
South basis. , reduce of Doug
the ongo 2011 Fuku
Chapte per mmB

compared to the preceding five-year period. total $160bn over the next five years, an increase of
parity mic growth healthy las-W
$7.10 econo output and to a estwo
andod the 24
has t
Weak cturing lead r- sia

Pricing
have d. Furthe
UK gas deal manufa levels y own.
Russia supply stock deman r capacit meltd has
China- China some LNG se in LNG
in nuclea gas price
rsal gas strategies.
LNG
tu t
The give decrea increase the drop in tion
per mmB and poor
helped
y. growth have un- more,
an
uted
to genera of a unive g
$6.41 securit economic pricin
The lack dominant
ics e power
feeding dynam of Chines has contrib
ption
for dised
als are a day t
Slower tic pricing bility consum Korea. two and subsi in
termin
LNG metres of
gas
rk, double
domes ed the profita in South led to regulated employed
t
In 2015, cubic dermin s in 2015.
However, anisms are
netwo
USA 62 millionUK energy e. LNG
import
East and
tu into the nth averag d for LNGto mech Middle
per mmB the 12-mo ing deman expose
d price as the
such
regions
$2.68 increas it being -term

33% over the hindcast period total.

t
UK’s result in and longer
Cana- could prices Africa.
North
Point, LNG cts.
e of Cove Asian contra n in the
is an
averag LNG prices.lowest productio ge
*This Charles the
Lake remain in the shale st avera
port and prices will fluctuation
to J p
Japan Increased to the lowe trying to
t
LNG prone ex- led is
e a net
and are years. tu US has s. Japan contr
acts
per mmB
becom driven
coming is set to
l gas by
2017, l gas price oil-linked In
$7.25 prices.
USA globa
t
The of natura s. the JCC from
porter LNG export away linked
by LNG
against
basis. move y-Hub duce
LNG
prices parity Henr nd
t
Japan on an oil are a conse-
in reducin
g
towards to intro n dema
pricing LNG prices it plans

Global LNG Capex has been dominated by Aus-

efforts
t
Falling of Japan’s costs by and
using
addition, 2015.Asia price.
et in in
quence import ive oil es mark a decrease
high energy of expens Futur g
coal in
place , drivin
India LNG. is falling
tu
p per mmB
Spain $7.20
tu prices
per mmB tes with
lower as well
s
$6.55 compe energy sourcefocusing
LNG t
LNG tive of
of alterna energy policyr, solar and

tralasia and Asia in recent years, however, over the The World LNG Market Forecast 2016-2020 examines
’s largest
has Europe y has as India’s ping nuclea y
t
Spain capacity. countr s due on develo . the majorit
import times, the ort cargoe the energy oil form ption.
and wind
t
In recented its re-exp demand and crude consum
increas domestic hydroelectric t
Coal y energy
g ntina
Arge to falling s use
of of primar
tu shift toward
per mmB . ated Prices2015)
LNG Estim
power mber
$7.62 y (Septe
to import 32: World
borne
Energ
forced with Figure Water
Chapte
ina was global prices : FERC,
t
Argentat higher d.
LNG ing deman a record r 6 : LNG
high in Source 28

forecast period all regions are expected to experi- trends in the LNG market by region and facility type,
de-
increas s of LNG hit peak winter d
of
ahead to rising deman
Transpo
t
Import
rtation
LNG
July 2015, due
season Argentina. estwo
od

Vessel
mand in las-W
for energy of Doug
to link ission
Ownanismers n perm
seller, tries
and the
buyer in markets/coun
.
the writte
en the rn Europe
without
s & An
yed a clear
and Southe
g Mech This is
a betwe emplo
and
contents
Pricing Price-Pricing negotiation ofor oil productots.develop, e.g. s of gas arein UK.
a formul in Asia
6-2020 any of
traded the
Oper ld LNG
Worational
Unive
Fleet
sa

– this
oil
rsal Gas method involvesuch as crude rent gas price sufficientAmerica and
where
volume NBP

ting fuelsenable a transpa tries

alysis st 201 in any form
Foreca wise circulated
Different Market
North

ence positive growth, except for Australasia where supported by analysis, insight and industry consulta-
d pricing to compe s/coun Hub in
la-base l gas gas trading
to
in market e.g. Henry or other
t
Formu of natura or no method used LNG or whole
Worldbe copied in part
shed,
the pricethere is little – is a gas is
establi
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where Small pricing price for rbook
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t
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s that
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Conve
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30% Wes l ent,7%your
Douglas- this docum 25
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the LNG construction boom looks to be coming tion. Areas of focus include:
24 ational
Small
Large
6% Q-Ma Conve On Orde
x ntiona 20 r
3% Q-Fle 93% l 20
x
8%
Class 16
14 14 20
Small 10 14 Ship-owne
Small Capa
Conv city (m 3 12 8% rs with;
ention
Large
Conv al 10,00 ) 12 79%
ention 0 - 89,99 13%
<5 vesse

to an end, as the country prepares to enter a new • Drivers & indicators – a review of the factors
Q-Fle al 90,00 9 6
x 0 - 149,9 9 ls
Q-Ma
x 150,0 99 0 9 5-10
00 - 179,9 3 9 vesse
180,0 99 8 >10 vesse ls
LNG Figure

C
56: LNG 00 - 219,9 5 8 ls
carr

M.I.S.C.
QGT
8
The majo ier capa
220,0 99

r LNG
Carrie 00 - 259,9 8 16

ay LNG
cities r Fleet

Transport
rity of by 99
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conventio LNG 6 7

nal
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ity in

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the

J4 Cons
ver, vesse

Transport
the range . Large conv range of trend

ortiu

Japan
tional ed towa 2

production phase. The US now has vast potential as influencing the LNG market, including growing
90,00 l sizes 2 3

ing
entio

n Gas
carrie
the next of 150,000-17 nal carrie 0- rds the seem

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ing
rs

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Shipp
make large

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BP Shipp
largest 9,999 up 93%

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Mgm Ship
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gas
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nal Gas
impo case for nt et tely 95 Figure

MOL
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a LNG

Dyna
rters addre only 7% 79% own currently.

J3 Cons
ship-owne

t.
witho ssing smaller 57: Vesse
(Figure k. Of these

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helping ut smaller 56). The nals repre

Stena
rs
with the access to larger 8% have fewer than ship-owne in
l Owne

i OSK
gas LNG sent The curre rs & Fleet

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it could redistribut a pipeline trend five

Chin
carrie over
be relate grid,
the incre rs can towards ten vesse vessels, while rs, these nt orde Specificatio
quire d to meet ion of LNG asing be expla rbook ns

Mitsu
ment ties of dema ls. only orders, has 169
s for and LNG nd for ined by The large OSK Maran
it also ing desig units.
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n the Panam . In addit larger st fleet Line (MO Gas Of
make
s econ
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. In many re- ion, quanti- rently of LNG Trans L), Teeka Maritime,

an LNG exporter. However, the approval process global energy demand; environmental concerns
operation a canal, which the widening owne port, Mitsu experienc
omic d by QGT carriers y LNG
sense
.
cases
, al by is expe of
LNG,
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2008-2010ed significant
incen
tive for 2016 will provi cted to BW Gas, y LNG, Bonn M.I.S.C, Gola about geme
nt have
and China y Gas
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rs to sition port, chang orders. st numb LNG. ordered
owne of these utilise Gas Marit by Shell) (pend e the er; for shipp red. Thes
d by vesse larger , J4 Cons ing the owne These
Ship Mana Bonny Gas rs. Mara buyers orders ing Qata e
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order ship-owne ime and K ortium, eratio n into majo ri
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© 2015 nt and
Mitsu China fleet capac rs, QGTC would ls – with has nine Internatio
LNG has majo tion Berh
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29 vesse its 20 new op- ad (M.I.S
nal Shipp
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these ls orders, .C) is
the youn st are delive by the end sia’s ora-

for onshore projects remains slow and will limit the and sustainable energy; oil & gas prices; majors’
By purch od gest MISC of 2020
it
operation Petronas, a subsi
asing have
a fleet red, only . and curre diary of
this docum size abov QGT
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ent, your e 20. ed rs. The 24
organ Qata
r Gas terminals, in owning comp
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agree know port offsh ime ating
s that n as ‘Naki Com ore const education tank
it will Wo carrie lat’ oper pany
not copy ructio
or allow rld LNG
r fleet (QGTC), marin and in
ates the e repai n, the
in the r servic conversion
copied Market
to be world largest
. QGT LNG es secto and
in part Foreca C’s fleet rs.
or other st 2016-2
or whole
et is highly

growth rate of LNG expenditure in the region over production profiles; E&P costs, local content and
wise circula 020 r mark o-
ted in carrie by macr
any form The LNG is affected
any of
theFran ce al and s.
contents cyclic event
rtation Spain 1% without the economic ess is
Transpo China
1% writte
n perm uildin
g busin
uilders
r 6 : LNG
ission shipb six shipb of all
of Doug The LNG
the top
Chapte w DSME
7% las-W
estwoeavy – ing 89%

g Revie
top-h od or are build50 et is
100 Hudo HI
ng Japan South built ining
mark
rema
uildin Korea
dai 17% have
Hyun rs. The

2016-2020. In the US there are 20 LNG export geopolitics; drilling & production; diversification of
by its carrie
Shipb
saki .
Kawa 74% LNG ented
g of work for Asian 80 Mitsu
bishi fragm d
tive pricin a preference orders
H.I highly
anticipate
The attrac has led to of the Samsung ity is and

ard
r
ards a handful been Othe expo rt capac ast years

Shipy
cycli- shipy all but have 60 LNG the forec have suf-
et is highly nomic uilders; 2006 , 74% ase in
r mark shipb rs since -2015 to incre may not surge
in
macro-eco l economic
carrie een 2001 Korean shipyards handle this

rs by
carrie
The LNG affected by for LNG Asia.
Betw to South to Asian ity to
to
the globa nt in awarded awarded 7% 40 2015 t capac

Orde
is ards,
cal and ts of ese shipy yards. ficien
The effec -2009 were
evide a acts were 2013
events. try with of contr 17% to Japan nd.

terminals proposed for the future. Of this 20 pro- supply and unconventionals.
pean 2011 dema to
2008 g indus to Euro -2015 expected
turn in uildin d. The shipyards, the rest 20 2009 2001 turn is and
down r shipb the perio of Build
carrie rs for rs se and to 2007
Country
down of small d
the LNG to orde Chine pated Oil price ge cost
e in orde rs due antici 2005 ard and aroun
declin carrie d the
situ- ity is and Asian s by Shipy the avera nal vessels
visible of LNG exacerbate rt capac years ity 0 2003
r Order keep entio
upply market expo ast capac 2001 Carrie conv
overs further ressed LNG
in the
forec
sufficient e is 65: LNG
large
-2005 a supp ars that increase may not have nd. Ther Figure $200m.
in 2004 t was
. The resul 2010 . It appe gained ards in dema Asia,
such
ation and shipy surge of
, 2009 try has
since ly le this outside of this
in 2008 gas supp to hand of yards on some bility of
g indus found bility Effects

posed, 11 export terminals were originally planned • Overview of the LNG industry – the LNG
the shipb
uildin newly impro
ved
a possi , taking
the possi ularly
sion
due to nd. The pean
yards
well as
reces
rd pres-

BG Group
mom
entum
gas dema as Euro nd, as et, partic can
asing d upwa of dema the mark nt require- iers shipyards
and incre ent has
place
g a total excess nts to conte of Carr some shipyards
ulatin entra Local nce Price , only The
Average
sentim ing
market nd, accum -2014. How
ever, of new ards. also influe In 230 “Currently carriers. y enter very
dema upply se shipy areas can built. Oil price LNG aggressivel nt is
sure on n 2011
due to
overs Chine in ls are acts turn build are rnme plans.
rs withi Japan s in certa these vesse ded contr 220 down in China et. The gove to these to
202 orde e in spot rates nd from n
ment of p awar this mark financ
ially ity
dema as show e some t Grou shipyards ly capac LNG
the declin tion in own, .
wher
Sovcomflo rs to Asian rements,
210 supportiveexpect supp of these
and the
reduc er slowd in 2015 2011, carrie We can and the
cost .”
orders nt requi rs

for start-up between 2016 and 2020. However, DW chain, major players, contracting practices, spot
anoth dingly
lead to in YTD for four LNG local conte transfer 200
nd for
carrie
increase to fall accor
could ology

n
drop ed dema costs rs
of techn force.

$ millio
by the
steep top- that includ 190 Increasedr material carrie
ess is intention local work Shipy
ard
g busin have
built with the the & Highe
Major
LNG
shipb
uildin
uilders and traini ng of in spot 180
rs,
The LNG top six shipb LNG carrie . and drop 2015
– the Chapte in 2014
all icant 170
89% of r Japan ese yards in a signif seen 2013
e 54
and 8 : Mar
heavy has been half the level and declin ards
building st
There 160 an shipy 2011 rs
or are se, Kore
an
furth er ket
intere , to
Forecarates in 2015 nsion of supp filter throu
new
ly gh
nce of
Kore 2009 3 Capa
city Carrie
are Chine has been market from st to the expa
LNG Entra 2007 00m
there r uildin
g this will 150
2005 00 –
165,0 estwo
od

has taken a conservative view and anticipates only cargoes and current pricing.
Asia;
Recently
Impo
carrie n Shipb due las-W
LNG nd from 2003 for 135,0 of Doug
ing the as Dalia rs. 140 l Cost
rt Term
tries. in dema n orde ission
enter rs, such y Indus ructio 2001 ge Vesse n perm
se playe sheng Heav the LNG to const 66: Avera ut the
writte
Chine u Rong
and Jiangs ining mark
et share
highly
of
fragm
ented
than ten
with
inals Figure

6-2020 any of
the conte
nts witho

The rema g sector is fewer st 201 in any form

uildin Africa have won Foreca wise circulated
Market
shipb that
uilders Asia acts. or other
shipb g contr LNG or whole
Worldbe copied in part
Austr
uildin
shipb Easte alasia

six will be built over this period. DW expects North • Supply & demand – outlook, trade flows, future
rn

)
to

• Prospects
Latin Europe &

re ($bn
Ame or allow
Middle rica FSU not copy
North East it will
s that

nditu
West America isation
agree
Chapter 8 : Market Forecast ern Europ od organ
e Westwo ent, your $ millio Table

Expe
12: Cape
Douglas- asing this docum
n
Africa x on LNG
© 2015 By purch 2015 Impor
t Termi
Eastern Europe & FSU
Asia
2016 nals by
Austr
alasia
Region
2017 2015
EE & -2020

America to become a significant market player by the pricing, applications, regional gas & LNG markets
FSU 2018
Latin 2019
Amer
Middl ica
e East 2020
2011 North 672
Eastern Europe and the Former Soviet Un- In many Eastern European/FSU countries, 2012 Amer
ica A total
2013 Weste of
ion will represent % of global Capex over such as Lithuania and Estonia, Gazprom has % of global expenditure Over
the hindc
Figure
76: Cape 2014 rn Europ 2011-2015 $ bn was
e spent
highest ast of x on LNG 2015 0 The forec on LNG between
Import
the forecast period. Spending will mainly be a monopoly on the energy supply. Russian $ bn forecast expenditure expen 2011-
2015, Impor 2016 Total import

• Technologies
focused on liquefaction in Russia, however, foreign policy is increasingly viewed with mmtpa liquefaction capacity total spend diture on Asia had t Termi 2017 expected ast years of term
impo the nals by 2018 2016-2020 inals.
Liquefaction This was of $ bn being rt facilities, Region 2019 $ to incur
towards the end of the period import unease, especially the use of gas supply as a mmtpa import capacity driven their Warin
ess towa 2011
-2020 2020
mmt
pa Table
13: LNG bn. a total are

end of the forecast period. and unconventional gas: threat or a feedstock for
% of the Cape

Expenditure ($bn)
particular, by South Europ rds Russi Africa Impor x of
facilities will be built in the Baltic, as nations bargaining chip in negotiations with Ukraine. with gas Korea total. e will t Capa
wake imports and Japan with a continue a means West Asia 2015 city Comi 0
Asia was
seek to diversify energy supply away from Consequently, a large driver of the import The region had little liquefaction of the in to ng Onstr
Asia install nuclear shutd increasing in for $
furthe
r mmtp build impo
ern
Austr 2016
eam 2015 of Cape
the large
st contr
Russian pipeline gas and towards domestic market is the drive for energy security capacity installed over 2011-2015, but ed own. Over the bn Cape a comin rt faciliti alasia 2017 -2020 x for ibuto
mmtp es, EE the import
LNG regasification facilities. through diversification of supply, reducing it is expected to spend bn in this a of impo the perio conce
ntrate x over g onstr
eam
& FSU 2018 hindc
ast with terminals r ( %)
Asia will rt capac d,
with a d in Franc 2016-2020 Latin
Amer 2019 $ bn. total over
dependence on Russian gas. An EU report area over the forecast period. continue ity. few e, Belgiu , mainl ica Over expenditu
y
The vast majority, $ bn, of total Capex in August 2015 explicitly stated LNG as the
in impo
rt faciliti to be the bigge currently key projects m and Middl
e East 2020 region the forec re of
partic in the Spain North is expected ast perio
mmtp es, forec st invest ularly Baltic, , Amer 0 the large d, the
in the region will be spent on liquefaction way in which this would be achieved. Expenditure on import facilities is a( % ast to or threatened which ica st contr to continue
of $ of the install Weste
North by Russi is rn Europ % of forec ibuto to be

LNG?
facilities. As there were few liquefaction expected to grow $ bn, from the bn – share r,
2016-2020 % of globa ) for an invest highe
Amer
ica was a. e
0 amou ast Cape accounting
projects in the hindcast, this is a huge The majority of Russia’s gas is currently hindcast of $ bn to a total of $ bn . l impo ment st in terms histor Total nt of x at an for
rt Cape ically the $ bn. expected
x over capac of Cape Latin
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
increase. A particularly noteworthy example transported by pipelines. As Russia looks over the forecast period. West
ity, with x, spend third Ame 0 West
ern Europ onstream mmtp ing $ of impo rica will add ern Euro

• Markets
is the first three Yamal LNG trains, the first to export further, and finds its traditional of impo e had in a. All bn, and rt capac anoth
rt capac the next jects taking 2011 alone of this comp er investor pe is
the secon
Figure 82: Capex on LNG Facilities in Eastern Europe & FSU by type 2011-2020 of which is expected onstream in 2018. markets turning away, it is likely that there It can be expected that Eastern Euro-
mmtp ity comin highest place. , with
no other
came ared to ity over the mmtp
a 0 mmtp
in impo
d large
a, g onstr amou cheap
unconvent This is due hindc the forecast a in the rt facilities, st
These three trains alone will contribute will be increasing expenditure on LNG- pean countries will seek to diversify hindcast. for a spend eam, nt
no need ional to the pro- ast. Inves mmtp
a it adde period,
Eastern
Europ in the hindc building
The major of $ bn at adven was $ tment, e& forec ast
mmtpa to export capacity. Other key pro- related facilities. The diversification of supply their energy sources away from Russia to impo gas; Nort which d in the of impo
rt capac FSU will const ast, with and mmtp
was in
new faciliti ity of this over the were
cance rt, mean h Amer t of bn,
forecast is expected in the $ bn
Cape $ bn a
jects include the third train of the Sakhalin sources will drive Russia to seek other trad- by developing import facilities in the new capac ing most ica has hindc the hindc ity comp ruct

The global LNG Capex outlook to 2020 is character- • Supply chain & contractors – EPC contractor
in the
Netherland es, such as the same lled, or conve projects
to $
bn.
to incre
ase over
ast ast. The ared mmtp x respe
ctivel
and
2, and the Pechora LNG projects, however, ing options outside of European countries coming years. s. the Vopa ity reaso rted to the
$ bn correspond to mmp a
North y.
k facility be const ns, Nort export. The Midd comp ta over
h Amer ared to ing America,
Table 20: Capex on LNG Facilities in Eastern Europe & FSU by type 2015-2020 these are both being affected by Western evidenced by its planned pipeline to China. forecast
ructin
g any For le East the hindc investment are not Austr
period. new proje ica will not ity over did Austr ast $ is proje alasia
$ million 2015 2016 2017 2018 2019 2020 sanctions in the wake of the Ukrainian issue. Russia will continue to invest in cts over the hindc not add alasia, bn. facilit cted to and Afric
© 2015 the spend
$ bn ast, but any new capac boom with its ies in
the forec build any impo a
Import The region has vast reserves, including liquefaction to expand its export Douglas- is expe , did own unco
addin over cted to - cast and not build nvent ast perio rt
Expenditure on import facilities will be com- those in Russia and Poland. However, many capabilities. Westwo g mmtp the 2016 any capac ional d.
Liquefaction -2020 will not
od a. ity
By purch perio in the
LNG Carriers 0 paratively small at $ bn over the forecast of these developments require complex asing d, forecast in the hind-
this docum Africa either.
Total period (up from $ bn) – all of which will and expensive construction which is prone ent, your did not

ised by this regional change in focus, in addition to a market share analysis, construction, liquefaction
organ hindc add any
be focused in the Baltic regions, which are to delays, such as that witnessed in the isation ast, howe import
agree $ ver, it capac
trying to gain energy independence from a Shtokman project. Russia, the region’s key s that bn on is proje ity in
it will proje the
not copy Wo after
the forec cts that will
cted to
or allow rld LNG
more active Russia which is using gas sup- LNG exporter, has also faced numerous spend
ast perio come
copied Market
plies as a bargaining chip. Key projects here sanctions as a result of its ongoing politi- to be d (2021 onstream
in part Foreca +).
or other st 2016-2
include the Polski LNG, the Estonian Paldiski cal tension with Ukraine. Until significant or whole
project and proposals in many other Baltic progress is made, DW does not expect the wise circula 020
countries. In total, the forecast period should region to be a prominent player in the LNG ted in
any form
any of

weaker projected year for expenditure in 2016. This technology market and regasification.
see mmtpa of import capacity added. market over 2016-2020. the conte
nts witho
ut the
writte
n perm
ission
of Doug
© 2015 Douglas-Westwood las-W
World LNG Market Forecast 2016-2020 74 estwo
od 68
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• Transportation – LNG carrier fleet and ves-
sel 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, com-
ponents 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 expan-
sion 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 compa-
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The report is essential for design engineering houses,
engineering, procurement and construction contrac-
tors, technology providers, shipping companies, LNG
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energy business insight
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
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World LNG Market
Forecast 2016-2020
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