Poten has two LNG and Natural Gas Advisors presenting at the Gastech Virtual Summit in September. Senior Advisor Kerry Anne Shanks will be presenting on LNG and environmental issues.
Between 2010 and 2018, coal-to-gas switching saved around 500 million tonnes of CO2 globally. A Poten analysis considering sales channels for LNG, shows that LNG typically displaces higher Green House Gas (GHS) emitting fuels, in particular coal. GHG reductions are being supported by the falling cost of renewable energy. There is a complementary relationship in power generation between renewable (particularly wind and solar) and natural gas in many end-use markets. Often growth in renewables is facilitated by access to flexible Combined Cycle Gas Turbines (CCGTs) power plants which can be used to balance the variability and intermittency of renewables.
Ming Cai, Senior Advisor, will be discussing the Chinese gas market.
China has the strongest LNG demand growth in the world in the past three years, up from 38 MMt/y in 2017 to over 60 MMt/y in 2019. The increasing energy demand, environmental concerns and relatively slow growth from domestic gas production and pipeline gas imports continue to drive up the LNG demand in China. To meet the LNG demand growth, Chinese players have signed more than 50 MMt/y medium- to long-term contracts commencing by 2020. Especially the second-tier buyers have been actively procuring LNG since 2018, including ENN, Zhejiang Energy, Guanghui Energy, etc. With equity LNG from LNG Canada, Arctic LNG 2 and Rovuma LNG, total contracted volume will reach 60 MMt/y by 2025. In addition, many other second-tier buyers are still in negotiation or plan to procure LNG. There are concerns in the market whether China will continue to see strong growth in LNG demand through to 2025. If not, then what will be the impact on Asian LNG market? In addition, the recent start of Russia-China pipeline gas import, the ongoing China-US trade war and the current COVID-19 pandemic are going to bring more uncertainties into the market. The key purpose of this presentation is to discuss prospects of gas market evolution in China, highlighting the opportunities and challenges for LNG buyers and sellers in the market by 2025.
For additional information on Poten & Partners’ participation at Gastech 2020, feel free to email us at firstname.lastname@example.org.