USA: LNG will have a Significant Role in Energy Security Around the World

Liquefied natural gas has assumed an increasingly significant role in the energy security of several nations around the world, and the value of internationally traded liquefied natural gas that can be efficiently stored and transported by ships is expected to grow by an average of 17% per year from $73 billion in 2009 to over $180 billion in 2015 supported by strong volume growth and higher prices, according to Liquefied Natural Gas Market Worldwide by leading industrial market research firm SBI Energy.

Natural gas currently accounts for 20% of the world’s marketed energy, which makes it a critical fuel in the generation of electric power and heat.

It is the second most frequently utilized fuel for the generation of electricity in the United States and third in the world.

Over the past year, global recessionary conditions have moderated demand for energy as consumer demand for goods and services and related manufacturing has slowed.

However, as most nations make a much anticipated recovery over the next 12 to 18 months, energy consumption will continue to rise rapidly driven significantly by demand from economically developing nations.

SBI Energy predicts global energy consumption will increase by 19% from 462 quadrillion British thermal units (Btu) in 2005 to over 551 quadrillion Btu in 2015.

“As an efficient and economical means of transporting natural gas, the need for the liquefied variety is driven by natural gas demand in various parts of the world that do not have adequate domestic or pipeline supplies of this fuel,” says Shannon Shuflat, SBI Energy analyst and co-author of the report.

Population growth and economic growth are key factors driving increased demand for energy over the next five years.

As population increases, the requirement for institutional services including infrastructure, government and healthcare along with potential demands for various commercial services also increases.

In a dynamic twist on the classic domino effect, these increases will lead to more industrial activity such as manufacturing, mining and construction, transportation and the requirement for and ability to afford increased commercial and retail services, larger homes and more energy using appliances and equipment, all of which leads to rising energy requirements.

Economic prosperity dictates the degree to which these requirements and potential demands are met. Liquefied Natural Gas Market Worldwide includes a broad review of the global market for liquefied natural gas.

Key technologies leveraged within the liquefied natural gas supply chain, including liquefaction, shipping and regasification technologies are discussed.

An overview of the liquefied natural gas market structure, mechanisms and key participants is also provided.

Additionally, recent investments in liquefied natural gas liquefaction capacity, shipping capacity, and regasification capacity across regions and major participating nations are discussed.

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Source: pr-canada, May 28, 2010;