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LNG Both As Cargo And Fuel Is A Powerful Evolutionary Driver – ABS and Poten & Partners

Last updated on December 10th, 2019
LNG Both As Cargo And Fuel Is A Powerful Evolutionary Driver – ABS and Poten & Partners

LNG Both As Cargo And Fuel Is A Powerful Evolutionary Driver – ABS and Poten & Partners

To explore the prospects of the LNG industry, about 300 LNG industry top leaders have joined ABS and Poten & Partners.

LNG: An Open Exchange of Views offered an innovative format for the open discussion and debate on the future prospects of LNG supply, demand, trade, and transportation.

“LNG both as cargo and fuel is a powerful evolutionary driver in the global maritime industry with significant potential to help owners address regulatory and operational targets. However, the industry faces structural and technical challenges,” said ABS Chairman, President, and CEO, Christopher J. Wiernicki. “Today, we were able to hear from the key global players in this industry precisely what the barriers to success are and how they plan to rise to the challenge.”

Michael Tusiani, Chairman Emeritus, Poten & Partners, said: “LNG is one of the fastest-growing global commodities. There are more supply projects under development than ever before, with opportunities for spot and short-term trading complementing the traditional long-term contract structure of the industry. The proliferation of new business models and opportunities are bringing new participants into the sector with very different cost structures and dynamics compared to the incumbents. It’s a revolution and no-one knows how it is going to shake out.”

Classified into three-panel discussions, the event was opened with a discussion about issues related to LNG supply which also includes the challenges due to a more dynamic and flexible market like the seasonality of demand, optionality, cargo diversions, and gas-to-power and also the evolution of project finance.

The demand for LNG particularly in the markets of China, India and Southeast Asia and for non-traditional uses like mid and small scale LNG developments, LNG bunkering and transportation fuels was analyzed by an expert panel.

In the last session, LNG transportation and trading were discussed. The probability of a liquid LNG spot market and the continuous growth of LNG exports in the U.S. was discussed by the panelists. LNG shipping and usage of LNG as a marine fuel in the future was also a major topic that includes order book issues, development of charter terms operating standards and the threat or opportunity presented by IMO 2050.

“We heard today how the industry will need to adapt to face the unique challenges posed by emerging markets, the rise of renewable energy sources and the test thrown down by regulators. It is clear the entire industry needs to evolve,” added Tusiani.

Reference: eagle

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