- published: 24 Mar 2016
- views: 227
Liquefied natural gas (LNG) is natural gas (predominantly methane, CH4) that has been converted to liquid form for ease of storage or transport. It takes up about 1/600th the volume of natural gas in the gaseous state. It is odorless, colorless, non-toxic and non-corrosive. Hazards include flammability after vaporization into a gaseous state, freezing and asphyxia. The liquefaction process involves removal of certain components, such as dust, acid gases, helium, water, and heavy hydrocarbons, which could cause difficulty downstream. The natural gas is then condensed into a liquid at close to atmospheric pressure by cooling it to approximately −162 °C (−260 °F); maximum transport pressure is set at around 25 kPa (4 psi).
LNG achieves a higher reduction in volume than compressed natural gas (CNG) so that the (volumetric) energy density of LNG is 2.4 times greater than that of CNG or 60 percent that of diesel fuel. This makes LNG cost efficient to transport over long distances where pipelines do not exist. Specially designed cryogenic sea vessels (LNG carriers) or cryogenic road tankers are used for its transport. LNG is principally used for transporting natural gas to markets, where it is regasified and distributed as pipeline natural gas. It can be used in natural gas vehicles, although it is more common to design vehicles to use compressed natural gas. Its relatively high cost of production and the need to store it in expensive cryogenic tanks have hindered widespread commercial use. Despite these drawbacks, on energy basis LNG production is expected to hit 10% of the global crude production by 2020.(see LNG Trade)
Spot or SPOT may refer to:
Natural gas is a naturally occurring hydrocarbon gas mixture consisting primarily of methane, but commonly including varying amounts of other higher alkanes, and sometimes a small percentage of carbon dioxide, nitrogen, and/or hydrogen sulfide. It is formed when layers of decomposing plant and animal matter are exposed to intense heat and pressure supplied by existing under the surface over millions of years. The energy that the plants originally obtained from the sun is stored in the form of chemical bonds in the gas.
Natural gas is a fossil fuel used as a source of energy for heating, cooking, and electricity generation. It is also used as fuel for vehicles and as a chemical feedstock in the manufacture of plastics and other commercially important organic chemicals. It is a non-renewable resource.
Natural gas is found in deep underground rock formations or associated with other hydrocarbon reservoirs in coal beds and as methane clathrates. Petroleum is another resource and fossil fuel found in close proximity to, and with natural gas. Most natural gas was created over time by two mechanisms: biogenic and thermogenic. Biogenic gas is created by methanogenic organisms in marshes, bogs, landfills, and shallow sediments. Deeper in the earth, at greater temperature and pressure, thermogenic gas is created from buried organic material.
LNG prices in Asia were mostly rangebound in 2015, but prices have dropped rapidly in the first months of 2016. In this video, Platts pricing analyst Max Gostelow examines what current price movements mean to buyers of spot cargoes in the region and the growing LNG production in Asia Pacific. He also explains the evolution of the JKM swaps market, and why more and more users are finding them to be effective financial instruments to manage risk.
Petronet LNG: Prices eased in spot market for short term
I've field several calls recently from companies interested in buying LNG. It reminds me of that line from Charles Dickens' Oliver Twist. Please sir I want some more. LNG, that is. Turns out that getting your hands on LNG cargos is not so simple. LNG is usually sold on long contracts so there are few spot cargos available. Existing buyers usually want LNG for their own needs. And there are no LNG trading Hubs yet in operation. You could buy into an LNG project but that costs billions. LNG cargos may be limited by destination clauses that restrict where LNG can be sold. These clauses prevent LNG being marketed from the same source into the same market. And sales contracts are often very long (15 years or more). So getting an existing buyer to part with their contracted gas isn't so simple...
In this video, we review what happened in the LNG shipping market in the third quarter of 2016 and share with you our view of the year ahead. For 2016 as a whole, LNG trade is on track to increase by 20 to 25 million tonnes compared to 2015, or 8% – 10%. This increase in LNG trade will be roughly matched by an increase in the LNG fleet, which we expect to increase by 8% - 10% by year-end. More info: http://bit.ly/2fAFxl0 For more market insights, click here: http://teekay.com/investors/teekay-lng-partners-l-p/market-insights/ Forward Looking Statements This video contains forward-looking statements which reflect the company's current views with respect to certain future events and performance, including statements regarding: LNG market fundamentals, including the balance of supply and ...
Amplify Trading's Managing Director Will de Lucy delivers a short session on the basic concepts that drive energy markets.
Trading Natural Gas http://www.financial-spread-betting.com/commodities/how-to-spread-bet-natural-gas.html Christopher Beauchamp a technical analyst at IG comments. Natural Gas like crude oil is tied to the USA economy. Natural gas trading took off in the last couple of years; the shale gas explosion only happened recently and this reduces the dependence of the Western Economies and USA on the Middle East. The main users of Natural Gas are industrial factories and power stations which use about 58% of all Natural Gas.
The price difference between spot LNG cargoes delivered to North Asia and West India has fallen to a record low. Max Gostelow, Asia LNG associate editor, discusses evolving trade flows in Asia, an oversupply in the region and the spread in the Indian market.
Karim Rahemtulla provides his investment analysis of the natural gas market over the course of the year.
Japan’s oil industry is at crossroads with the refining sector possibly facing the biggest reorganization in the last decade. The LNG spot market, meanwhile, is poised to experience even greater commoditization and liquidity. S&P; Global Platts is uniquely placed to provide a robust price discovery mechanism for Japan's waterborne oil product and LNG markets, as Platts content head for Asia Sarah Cottle explains in this video.
LNG prices in Asia were mostly rangebound in 2015, but prices have dropped rapidly in the first months of 2016. In this video, Platts pricing analyst Max Gostelow examines what current price movements mean to buyers of spot cargoes in the region and the growing LNG production in Asia Pacific. He also explains the evolution of the JKM swaps market, and why more and more users are finding them to be effective financial instruments to manage risk.
Petronet LNG: Prices eased in spot market for short term
I've field several calls recently from companies interested in buying LNG. It reminds me of that line from Charles Dickens' Oliver Twist. Please sir I want some more. LNG, that is. Turns out that getting your hands on LNG cargos is not so simple. LNG is usually sold on long contracts so there are few spot cargos available. Existing buyers usually want LNG for their own needs. And there are no LNG trading Hubs yet in operation. You could buy into an LNG project but that costs billions. LNG cargos may be limited by destination clauses that restrict where LNG can be sold. These clauses prevent LNG being marketed from the same source into the same market. And sales contracts are often very long (15 years or more). So getting an existing buyer to part with their contracted gas isn't so simple...
In this video, we review what happened in the LNG shipping market in the third quarter of 2016 and share with you our view of the year ahead. For 2016 as a whole, LNG trade is on track to increase by 20 to 25 million tonnes compared to 2015, or 8% – 10%. This increase in LNG trade will be roughly matched by an increase in the LNG fleet, which we expect to increase by 8% - 10% by year-end. More info: http://bit.ly/2fAFxl0 For more market insights, click here: http://teekay.com/investors/teekay-lng-partners-l-p/market-insights/ Forward Looking Statements This video contains forward-looking statements which reflect the company's current views with respect to certain future events and performance, including statements regarding: LNG market fundamentals, including the balance of supply and ...
Amplify Trading's Managing Director Will de Lucy delivers a short session on the basic concepts that drive energy markets.
Trading Natural Gas http://www.financial-spread-betting.com/commodities/how-to-spread-bet-natural-gas.html Christopher Beauchamp a technical analyst at IG comments. Natural Gas like crude oil is tied to the USA economy. Natural gas trading took off in the last couple of years; the shale gas explosion only happened recently and this reduces the dependence of the Western Economies and USA on the Middle East. The main users of Natural Gas are industrial factories and power stations which use about 58% of all Natural Gas.
The price difference between spot LNG cargoes delivered to North Asia and West India has fallen to a record low. Max Gostelow, Asia LNG associate editor, discusses evolving trade flows in Asia, an oversupply in the region and the spread in the Indian market.
Karim Rahemtulla provides his investment analysis of the natural gas market over the course of the year.
Japan’s oil industry is at crossroads with the refining sector possibly facing the biggest reorganization in the last decade. The LNG spot market, meanwhile, is poised to experience even greater commoditization and liquidity. S&P; Global Platts is uniquely placed to provide a robust price discovery mechanism for Japan's waterborne oil product and LNG markets, as Platts content head for Asia Sarah Cottle explains in this video.