Global concern about environmental pollution has put focus on cleaner energy resources. The Renewable's are obviously, the best choice, but their contribution is not enough to meet the growing energy need. The next choice is natural gas, a clean and green fuel. All countries are not bestowed with this clean energy resource. Due to its ease of transportation LNG has attained a significant position in Global energy market.
During Covid-19 pandemic, it was LNG and electricity market which saw a growth in 2020 over 2019. World LNG liquefaction capacity reached 454.8 mtpa in 2020 up from 430.5 in 2019. Similarly, the regasification capacity reached 821 mtpa in 2020 up from 797.6 in 2019 and year 2021 witnessing LNG production 387,7 mtpa rate, up by 6.7% over 2020.
LNG new business model is witnessing increasing Investment in FSRU, LNG infrastructure development for Highway filling and LNG supply to CGD. Of the 37 existing LNG import markets as of February 2021, 19 imported LNG with FSRUs, and six of those had onshore terminals as well.
During 2020, the world has witnessed an unprecedented era of low LNG prices, making a stronger economic case for switching from polluting fuels to natural gas. However, this delight has been shot lived as the prices have started soaring again. JKM market has witnessed a low price of $1.825/mmbtu in April 2020 and a high of $32.50/mmbtu in January 2021. In past too, we saw that long term contract prices have witnessed a high of four times as compared to the spot price, at many occasions the spot prices become much higher than long term contract prices. Also, the regional variation in LNG price has been quite high, thus the LNG pricing, remains an important issue.
LNG in India was introduced in 2004 and by 2010, its share reached to 4% and by 2020 it reached to 50%. With present trend of energy demand, LNG share is sure to increase. India is emerging as one of the few strong LNG demand centers in Asia and in coming decade, Asia is foreseen to be the center of gravity for global LNG market.
To address these issues, Resonance Energy, is organizing one day conference 'Global LNG Conclave' on 21st April 2021, in Virtual platform, where LNG- Supply, demand, pricing, Infrastructure and new business opportunities will be discussed. Download Brochure