For a long time, LNG has carried the promise to develop into a major source of gas supply for the European market – an expectation it has not lived up to yet. However, as a global commodity, LNG’s contribution to the world’s energy mix is growing. New liquefaction terminals are under development and regasification terminals are continuously being added, especially in developing countries. If the current rate of production keeps up, USA is expected to increase its export capacities on its way to potentially becoming the world’s largest gas producer.
Meanwhile, the outlook in Europe remains uncertain; not so much regarding the importance of LNG, but rather the timeline. The hopes peaked several times in the past decade, but unforeseen developments dampened promising growth. The impact of Fukushima diverted all cargoes to Asia for an extended period of time, until the drops in the gas price made LNG imports largely unfeasible anyway. Not to mention that the turbulence in the financial markets of recent years has made infrastructure investments more than difficult.
Without a doubt, LNG’s role on the world’s energy market is constantly gaining momentum, making Europe’s renewed interest a question of when rather than why. Eastern Europe, i.e. Turkey, seems to have a healthier LNG market at the moment than Western Europe, but the tables could turn swiftly once the prices allow for more flexibility.
GJP International have helped their clients find the right personnel both for the set-up of LNG activities as well as for the management and optimization of a diversified gas portfolio.