Recently published IGU reports

x  Now in its seventh year,

the latest edition of IGU’s World LNG Report contains a wealth of information, providing historical context for current and future trends in the dynamic LNG sector.

Recognised by both industry and external stakeholders, the IGU reports are highly valued. Both the number of downloads from the IGU website and the questions to the IGU Secretariat about permissions to use content in other articles and publications illustrate this.

Since the last edition of the IGU magazine, four new IGU reports have been published. In addition, a new Global Natural Gas Insights pocket book has been released (see box).

Flagship reports

Of the IGU reports, the most established are the World LNG and the Wholesale Gas Price reports. Both are now annual publications and two IGU committees, LNG and Strategy respectively, are responsible for their creation. Both are highly recognised. The World LNG Report serves many in the international energy business as a standard desk reference for information on the LNG industry. The first edition came out in 2010 and this year’s edition provides key insights on issues that will impact future world LNG activity, in addition to the report’s focus on recent historical data.

The 2017 edition shows that 2016 was a dynamic year for the global LNG industry, with significant growth in LNG supply projects, as well as increases in demand for LNG as a fuel from new and existing markets around the globe. The global LNG trade reached a record 258 million tonnes – an increase of 5% from 2015, and the largest ever year for LNG trade. This dramatic increase is particularly noticeable when compared with the average 0.5% growth rate of the previous four years.

IGU’s Wholesale Gas Price Survey started 10 years ago. It is a vital reference for the natural gas industry and has been undertaken for nine years. Together the studies confirm the significant changes there have been in wholesale price formation mechanisms in this period of major developments and upheaval in the global gas market.

An article by Floris Merison from the IGU Strategy Committee, in the October 2016- March 2017 edition of International Gas (pages 90-93), showed how these wholesale gas price studies prove that global gas prices, contrary to expectations, have converged since 2005.

For the latest study, survey responses were received for countries that cover 90% of total world consumption. It shows, among other findings, that average wholesale prices in 2016 were at the lowest level ever recorded by the study ($3.35 per MMBTU). Prices continued to converge in 2016, as market prices continued to decline, while regulated prices predominantly rose, outside the former Soviet Union where currency weakness reduced prices in dollar terms. The most used price formation mechanism in 2016 was gas-on-gas competition (45%) and from 2015 this share was broadly unchanged. The second most used continues to be oil price escalation, which in 2016 stood at 20%.

IGU case studies

A more recently instigated initiative, but just as valuable and requested, is the new series of IGU case study reports. In order to show how natural gas contributes to a sustainable energy future and improves the lives of people around the world, the series provides case studies on how natural gas solutions have solved issues related to air quality.

Improving urban air quality

The first edition of Case Studies in Improving Urban Air Quality was released for COP 21 in Paris in December 2015 and received attention from international media, such as the Financial Times. A second edition was published for the EU Energy Week in Strasbourg in November 2016. This latest edition highlights how the increased use of natural gas in power generation, heating and transport can significantly reduce air pollution and has done so in four European cities: Berlin, Dublin, Krakow and Rotterdam. The study examines policies, such as fuel switching initiatives, that have led, or are leading to, real progress in improving air quality without sacrificing economic development.

As one of the examples from this edition shows, in Berlin a widespread shift from coal to natural gas in power and heat generation (including residential) played a significant role in improving the city’s air quality in the decades after reunification. Since the Berlin Wall came down in 1989, air quality in Germany’s capital city has greatly improved. Berlin’s sulphur oxide (SO x ) emissions have dropped by 95%, nitrogen oxide (NO x ) emissions decreased 76%, and particulate matter (PM10) emissions were on track to decline by 83% between 1989 and 2015. These decreases are largely attributable to reduced use of coal and an increase in the use of gas (from 17% of the city’s energy balance in 1990, to 41% by 2012).

According to Martin Lutz, Head of Sector Air Quality Management in the Berlin Senate Department for Urban Development and Environment: “Having promoted gas for decades as a clean fuel, in particular for residential heating, we are now focusing on CNG-vehicles as a clean and mature technology alternative to diesel in order to meet road air quality standards.

While we’ve reached a decent density of CNG filling stations we still need a broader variety of gas-vehicle models to be offered by the auto industry.”

z  IGU’s decade of

comprehensive data gathering that underpins the latest edition of the Wholesale Gas Price Survey has provided surprising insights.

v  Now in its second

edition, Case Studies in Improving Urban Air Quality shows the benefits of increasing the use of natural gas in four European cities.

Enabling clean marine transportation

The newest addition to the case studies series is Enabling Clean Marine Transportation. It was issued in March at the G20 Energy Sustainability Working Group, and highlights the significant role of LNG in cleaner marine transport. The IGU President, David Carroll,

Global Natural Gas Insights

Global Natural Gas Insights is a small format publication that presents a broad overview of the significant contribution natural gas can make in meeting global energy challenges – economically, environmentally, and in meeting energy security goals. The handy size allows one to easily bring it along for use when making the case for gas.

The 2017 edition contains the latest information on natural gas and its role in enhancing quality of life around the world, delivering a cleaner environment, meeting vital needs, creating economic opportunity and driving innovation. said at the time of the release: “The case for using LNG fuel for shipping is clear. It will provide significant improvement to our quality of life by dramatically reducing air pollution. It will also support climate change goals by reducing greenhouse gases. We need effective policy change to encourage a switch to LNG. This report, and our recent reports on urban air quality, demonstrate the key role natural gas plays in tackling the issue of air pollution and improving the quality of people’s lives.”

Marine transportation is an often overlooked contributor to negative air quality levels – with one large container ship, powered by 3% sulphur bunker fuel, emitting the same amount of sulphur oxide gases, as 50 million dieselburning cars.

Strong policy responses are needed to make this switch a reality and Enabling Clean Marine Transportation outlines a number of recommendations for governments to follow. Read LNG – the key to unlocking cleaner marine transport? by Mel Ydreos, IGU Executive Director of Public Affairs, on pages 20-22 for more information on this report.

We encourage you to download all four reports and more at www.igu.org.