Global Gas Markets: The Role of LNG in the Golden Age of Gas and the Globalization of LNG Trade

By Sakmar, Susan L. | Houston Journal of International Law, Summer 2013 | Go to article overview

Global Gas Markets: The Role of LNG in the Golden Age of Gas and the Globalization of LNG Trade


Sakmar, Susan L., Houston Journal of International Law


I.   INTRODUCTION  II.  THE ROLE OF NATURAL GAS IN THE 21ST CENTURY       A. The Divergent Views About Natural Gas       B. The Global Economic Crisis and Projections for          Natural Gas Leading into COP 15       C. Natural Gas Grows in Importance-IEA WEO-2010          New Policies Scenario       D. World Energy Demand Grows Under Any Scenario       E. Natural Gas Will Play a Central Role in Meeting          the Energy Demand in 2035   III. THE GOLDEN AGE OF NATURAL GAS       A. Increased Demand from China--China's 12th          Five- Year Plan       B. Lower Growth of Nuclear Power--Japan's          Fukushima Daiichi Crisis       C. Natural Gas in Transportation       D. Price and Supply of Natural Gas       E. Climate Change and the Role of Natural Gas in          the GAS Scenario       F. Are We Entering a Golden Age of Natural Gas?   IV. THE ROLE OF LNG IN THE GOLDEN AGE OF GAS      A.  The Evolution of LNG Trade--From Regional to          Global      B.  Traditional Pricing Structure for LNG--Oil          Linked Pricing      C.  Recent Pricing Issues      D.  From Convergence to Divergence: Is the US Market          Moving Away?      E.  The Future Evolution of LNG Markets  V.  CONCLUSION--THE FUTURE LOOKS BRIGHT FOR LNG 

I. INTRODUCTION

As the world enters the second decade of the 21st century, policy makers around the globe continue to grapple with issues related to energy security, energy affordability, and an expected increase in demand for all energy sources. At the same time, concerns about global climate change and reducing greenhouse gas emissions remain in focus as the world struggles to define the path to a sustainable energy future. (1) As an abundant, affordable, and clean-burning fuel, many countries around the world are increasingly looking towards natural gas to play a key role in powering the future. (2) The prospects for natural gas are so promising that the International Energy Agency (IEA) has suggested that the 21st century could be the "Golden Age of Gas" with demand for natural gas projected to increase by more than fifty percent from the 2010 levels and "account for over [twenty-five percent] of world energy demand in 2035." (3)

Along with the increased demand for natural gas comes a corresponding increase in international trade in natural gas, with most of the increased trade expected to be in the form of liquefied natural gas (LNG). (4) LNG is natural gas that has been cooled to approximately -161[degrees]C, at which point it condenses to a liquid that can then be shipped via LNG tanker anywhere in the world. (5) Since many natural gas reserves are located away from key demand markets, LNG offers an important solution for the global gas markets in terms of moving natural gas to markets where it is most needed. (6)

Through the lens of the IEA's Golden Age of Gas Report, this Article explores the growing role of LNG as the "glue" linking global gas markets and identifies a number of developments in global gas markets giving rise to new opportunities and challenges for LNG in the coming decades. (7)

Part II of this Article discusses the increasingly important role of natural gas in the global energy mix. This includes a discussion of the divergent views of natural gas as the world struggles to meet growing energy demand in the coming decades with cleaner burning fuels.

Part III addresses the role of natural gas through the lens of the IEA's Special Report, The Golden Age of Gas. Will the 21st century be the Golden Age of Gas? What are the key drivers behind the expected increase in natural gas in the global energy mix?

Part IV addresses the role of LNG in the Golden Age of Gas and highlights the important role LNG plays in global gas markets. In recent years, the significant increase in interregional LNG trade has led many to question whether the gas markets are globalizing, and whether LNG can someday trade as a global commodity. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Global Gas Markets: The Role of LNG in the Golden Age of Gas and the Globalization of LNG Trade
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.