LNG Market Snapshot
At least five new vessels entered the global LNG fleet in May and June. LNG demand remains tepid in Asia and South America and in Europe remains largely unaffected by the situation in Ukraine. Despite continuing decline in tanker rates, LNG Containerisation could drive up future LNG demand further and slash LNG shipping cost within a few years.Oil Market Snapshot
Brent price dropped by c. $10/bbl in the first half of July, from a 9-month high of $115.19/bbl. We slashed our oil price forecast to $108/bbl for 2014 on strengthening US Dollar, but raised it to $105.67/bbl for 2015, reflecting the upward sloping curve for oil future. We revised our global oil demand forecast to 1.1 million b/d for 2014 and 1.32 million b/d for 2015. Additional supply applies downward pressure on oil prices but the amplified regional conflicts keep prices in check.FPSOs with more ‘plant’ — A New FLNG Era?
Due to its technological complexity, floating liquefied natural gas (FLNG) often does not qualify as a low cost alternative to onshore LNG. So far, FLNG facilities both under development and planned tend to focus on smaller offshore gas fields. The FLNG approach will potentially unlock substantial volumes of gas otherwise stranded and add liquidity to the global LNG market, and by 2025, FLNG could add between 15.3mtpa (Low Case) and 64.8mtpa (High Case) of capacity or up to 17% potential LNG capacity growth over the coming decade.
Petrologica: Energy Research and Simulation
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