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Fitting LNG into the energy transition puzzle In the discussion of pathways to a more sustainable, low carbon What happened was a whole lot of ‘re-routing’ of available world, the value of the LNG (Liquid Natural Gas) business rarely output, including a sharp surge in gross LNG imports into Europe gets a mention. Quite possibly people are probably unaware given (up 66 bcm). This was balanced by the steep decline in the rest the low profile role it plays in the overall energy mix, and the fact of the world, particularly in Asia. It was the US that supplied that a mere three countries - Qatar, USA and Australia – dominate approximately two thirds (43 bcm) of the increased LNG inflows into Europe. The country is in fact destined to become with the global export market. Yet it was rapidly sourced international LNG supplies that Qatar the biggest long-term supplier of LNG worldwide thanks rescued Europe last winter when gas pipeline imports from to abundant supplies of gas (legacy of shale revolution), pipeline Russia were drastically cut in the fall-out over the invasion of facilities to export facilities, and cheaper transport costs to the Ukraine. This was mentioned quite a bit at LNG 2023, a four European market than rivals such as Qatar and Australia. yearly international event for anyone who is anyone in this Other ‘swing suppliers’ in 2022 were also able to redirect niche industry. Yet the prestige meeting, attracting 10,000 or so significant flexible volumes to the European market, with Qatar delegates, went largely unnoticed in Vancouver, which hosted (5 bcm), Egypt (5 bcm), Norway (3 bcm), Angola (2 bcm), at short notice when the original venue of St Petersburg was Trinidad and Tobago (2 bcm) and even Russia (2 bcm) providing cancelled for obvious reasons. Even environmental activists only the bulk of the remaining third. Which brings us to the virtues of LNG and its importance put up a token show of protest at this major fossil fuel gathering, surprising for such a normally vociferous ‘green’ city. in delivering energy transition as well as providing a safety net Europe’s escape from energy catastrophe for energy security. Definition first: LNG is a was of course a little more complicated. Luck, ‘No sudden surge in clear, odourless, noncorrosive, nontoxic liquid in the form of a mild 2022 winter not only in that is formed when natural gas is cooled to new gas production’ around -260 F. This shrinks the volume by Europe but in Asia and especially China, a big LNG consumer, had a lot to do with it. China about 600 times, making the resource easier to was still in recovery mode from Covid with a depressed economy store and transport through marine shipments. LNG is not stored from which it is only now showing signs of full recovery. It also under pressure and is not explosive or flammable in its liquid turned to burning more coal during this period. In addition the state. Hence it is touted as a an extremely safe hydrocarbons spiking spot price caused substantially less LNG (18%) to be resource to ship around the world. imported by India, Pakistan and Bangladesh. Most LNG is transported by tankers in large, onboard, Bottom line: there was actually no sudden surge in new gas super-cooled (cryogenic) tanks, also in smaller ISO-compliant production miraculously becoming available. As reported by the containers that can be placed on ships and trucks (this latter not International Energy Agency (IEA), the utilisation rate of global always popular with local communities). At import terminals, liquefaction capacity averaged 84% in 2022, unchanged from LNG is stored in cryogenic storage tanks before it is returned 2021 levels and slightly above the 2017- 2021 average of 83%. to its gaseous state or regasified to be transported by natural gas Even so 2022, global trade in liquefied natural gas (LNG) set a pipelines to natural gas-fired power plants, industrial facilities, record high, averaging 51.7 billion cubic feet per day (Bcf/d), a and residential and commercial customers. 5% increase compared with 2021, according to the US Energy Ironically in June 2022 at the height of the scramble for gas, Information Administration. LNG’s enviable safety record was tarnished by an explosion
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