LNG to Power Bunkering Market Development Drivers
“The Gas Exporting Countries Forum is forecasting that global bunker fuel consumption will increase to 41 mtoe (or 33 mtpa or 45 bcm) by 2040.”
Key drivers for the growth drivers for global LNG demand include:
- The price of Natural Gas has experienced an downward trends over the last 10 years, primarily driven by a surge in US unconventional gas production, as well as the launch of several large LNG projects in the US and Australia:
- Increasingly stringent GHG emissions regulations in the energy sector are and reducing the competitiveness and capacity of coal power plants, while shifting demand and Capex investments towards gas-fired power generation.
- As of result of improved economics and diminished coal power generation capacity, LNG being shipped over longer distances in multiple markets and is being used to for seasonal or year-round baseload power generation.
- Improved economics and technology advances in Floating Storage and Regasification Units (FSRUs) are enabling the deployment of quick and flexible LNG bunkering solutions to address seasonal baseload power shortages in emerging markets.