LNG Market Analysis in Netherlands

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ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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ABSTRACT

In this study we try to explore the market of “LNG” in a holistic context. The main focus of the research is on “Liquefied Natural Gas” and its potential in “Netherlands”. The research also analyzes different aspects of “market fluctuation” and covers the energy crisis and its impact. The research also contains facts about the impact of LNG market on the economy. Finally the research describes various factors of LNG market and explains the investment perception in the market.

Table of Contents

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

1.1The future need of Energy1

1.2Energy Policy European Commission2

1.2.1 Outside Influences4

1.2.2 Energy Priorities5

1.3Dutch gas roundabout ambition6

1.4Liquefied Natural Gas (LNG)9

1.4.1 Types of LNG Plants10

1.4.2 Liberalization and Privatization11

1.4.3 LNG Hazards12

1.4.4 LNG Export Facilities13

1.4.5 LNG safety and security13

1.4.6 Cost Inflation14

1.4.7 Changing Risk Profile15

1.5First LNG terminal in the Netherlands16

1.6Gas Reserves in Netherlands16

1.7Global Finances Trends16

CHAPTER 2: AIMS AND OBJECTIVES18

2.1 Aims18

2.2 Objectives18

2.3 Research Question18

CHAPTER 3: THEORY AND LITERATURE REVIEW19

3.1 Current Situation19

3.1.1 Energy Facilities21

3.1.1.1 Modern LNG Facilities23

3.1.2 Market Position24

3.1.3 Recent Crisis26

3.1.4 Factors affecting Demand28

3.2 Future Perspective29

3.2.1 Historical View29

3.2.2 Growth Opportunities31

3.2.3 Impact on Economy35

3.2.4 Key Financial Calculation36

4.1 Research on LNG39

4.1.1 The Specification of LNG40

4.1.2 Infrastructure Access41

4.1.3 Shipping and, Import Capacity42

4.1.4 LNG Demand42

4.1.5 Environmental considerations46

4.2 Research Purpose46

4.3 Research Approach47

4.4 Data Collection47

4.5 The Survey Approach48

4.6 Interviews50

4.7 Data Analysis51

4.8 Validity and Reliability51

4.9 Theoretical Perspective53

CHAPTER 5: INTERVIEW RESULTS55

5.1 Introduction55

5.2 Participants55

5.3 Experiences and Future Perspective of LNG55

5.3.1 Introduction55

5.3.3 Prices56

5.3.4 Supply57

5.3.5 Demand61

5.3.5.1 Netherland Perspective62

5.3.6 Processes65

5.3.6.1 Import terminals65

5.3.6.2 Quality Adjustments67

5.3.7 Politics68

5.3.8 Competition69

5.3.9 Future Expectations70

5.4 Summarising the key issues - literature and interview70

5.4.1 Current situation71

5.4.2 Energy Facilities71

5.4.3 Market Position71

5.4.4 Recent Crisis72

5.4.5 Factors affecting the Demand72

5.4.6 The Future Perspective73

5.4.7 Impact on the Economy73

5.4.8 Key Financial Calculations74

CHAPTER 6: REFLECTIONS ON THE PRIMARY RESEARCH PROCESS75

6.1 What Worked?75

6.2 What difficulties were encountered?75

6.3 What other research could have been undertaken?76

6.4 What was learnt for the research process?76

CHAPTER 7: CONCLUSION AND RECCOMENDATIONS79

7.1 Introduction79

7.2 Conclusion79

7.3 Recommendations80

7.4 Future Research82

REFERENCES84

TABLES AND FIGURES

World Marketed Energy Consumption…………………………………………....1

Financial highlights for the DONG Naturgas Group………………………….…38

CHAPTER 1: INTRODUCTION

The future need of Energy

The International Energy Agency (IEA) published in their “World Energy Outlook 2010” that total energy demand is going to increase 1.4 percent every year from 2007 to 2035. Energy demand will increase because of increasing standards of living, especially for many people in developing countries, and because of population growth (U.S. Energy Information Administration 2010). United Nations predicted in a 2004 report that world population keeps growing till a peak of 9.22 billion in 2075. It is clear there is an increasing need for energy in the future.

Figure 1: World Marketed Energy Consumption, 1990 - 2035

Energy Policy European Commission

Energy policies address the production, consumption and distribution of ...