Transportation Emerges as New Hope for LNG Demand Growth02-Jun-2016
A move to cleaner transportation fuels could mop up the surplus in the global liquefied natural gas market more quickly than anticipated and open up a new growth market for producers such as Woodside Petroleum.
Woodside is following major Royal Dutch Shell in positioning itself to benefit from increased use of gas in road transport and shipping.
Demand for LNG from the transport sector could reach 24.4 million tonnes a year by 2020, representing a 7 per cent rise from estimated global demand, according to new findings from Bernstein Research.
That represents about 10 per cent of global LNG imports and could help absorb some of the surplus LNG supply, which is affecting the market and is expected to be particularly evident in 2018, Bernstein's energy team, led by Oswald Clint, said.
In April Woodside announced an investment in LNG fuelling infrastructure in Dampier, Western Australia, with the aim of targeting the long-distance trucking market as well as iron ore tankers.
"We think the opportunity is immense if we can get the concept moving," Woodside chief executive Peter Coleman said at the investor day earlier this month. "Look where we are, we are in the busiest iron ore port in the world."
Mr Coleman said increasingly stringent environmental regulations around marine transport "is going to require new-build shipping to have a cleaner burning fuel". (From www.smh.com.au) Read More...