LNG in a Changing World

LNG in a Changing World: Stability, Volatility, & the Path to Net Zero

The demand for liquified natural gas (LNG) is rising. This transportation method for natural gas is complex, as it involves cooling the gas to -161oC (-259F), shipping it in specially designed vessels and regasifying it in dedicated terminals, before it reaches the customer. But its use is increasing, because it allows gas to be transported from a wider range of producers to a wider range of buyers than would be possible using existing pipelines.

Natural gas is an attractive option for many uses including heating, cooling, electricity generation and production of industrial materials (such as steel and concrete). Estimates vary as to its emission savings in comparison with coal, but there is agreement that it also involves lower emissions of particulates and pollutants such as sulphur dioxide or mercury.

What lies behind very different predictions of LNG prices? The factors that underlie volatility are many. They include geopolitical instability, notably but not exclusively Russia’s invasion of Ukraine. They also include decisions taken by national authorities on whether gas is on the pathway to Net Zero, as a transition fuel or as a lower-carbon alternative to coal. Individually these are hard to predict. On top of these issues there are seasonal weather factors at play, at a time when weather patterns are becoming more difficult to forecast.

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LNG in a Changing World: Stability, Volatility, and the Path to Net Zero - Quarter 3 2024

Case for tracking:

Natural gas appears as a prominent mention throughout the 14 strategic and corporate reputation pillars. It is claimed that LNG has lower emissions compared to coal and other fossil fuels, and thus happens to be a safe option that several O&G companies can rely on to meet their emission goals.

That being said, after going through a number of articles, there are quite a few articles contradicting each other, some stating that the price of LNG will surge, some claiming it will plummet in the coming years, while some suggest that it is worse than coal when you follow its total carbon-footprint. It would be interesting to further investigate this and watch out for trends as this seems to be an area where clarity could put us ahead of the noise.

Volume of Mentions from Energy Considered’s Key Opinion Leaders:

LNG in a Changing World: Stability, Volatility, and the Path to Net Zero - Quarter 4 2024

Case for tracking:

Natural gas appears as a prominent mention throughout the 14 strategic and corporate reputation pillars. It is claimed that LNG has lower emissions compared to coal and other fossil fuels, and thus happens to be a safe option that several O&G companies can rely on to meet their emission goals.

Similar to Q2 & Q3, the war in Ukraine continues to maintain uncertainty in global gas prices. While the US has decided to be “America first”, pushing their O&G and LNG production, the disparity between the LNG prices in key markets is expected to rise. Some LNG projects are on the rise in LATAM & SE Asia, but Europe is still reliant on imports.

Volume of Mentions from Energy Considered’s Key Opinion Leaders:

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  • Extended editorial briefings with in-depth analysis and empirical data drawn from 5,000 of the world’s most influential commentators on the energy industry on key issues shaping the energy sector.
  • Monthly and quarterly data identifying and tracking how energy industry leaders are engaging with critical topics.
  • In depth research explaining why energy industry leaders are engaging with these key issues and providing the context and framework for further exploration.
  • Quantitative primary research conducted with responses from energy industry leaders on our panel, providing unique answers to the issues affecting the global energy industry.
  • Power BI dashboards offering dynamic exploration of 5,000 energy key opinion leaders, social and digital narrative analysed against 14 strategic and tactical energy industry metrics.
  • Expert interpretation of what these issues really mean to the industry and what decisions can be taken on the back of unprecedented empirical evidence.
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