[The Globalization of LNG Markets: Historical Context, Current Trends and Prospects for the Future]

By

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, […], 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.

Signed __________________ Date _________________

Abstract

Liquefied Natural Gas has recently been the target of increased attention in international markets for natural gas. As the world increases the demand for natural gas and traditional sources of supply in North America and Europe are unable to keep up, the LNG is being presented as a potential source of additional supply. Growth in the Atlantic basin has increased in recent years, growing to almost 13% in 2006 but it has a few limitations to the continued growth in the next 5-7 years. Since the liquefaction capacity strives to catch up with gasification, the effects of LNG can have on market dynamics of the Atlantic Basin, it atrophies.

A group of potential suppliers to the Atlantic Basin, including Nigeria, South America and Qatar, the key to unlocking the true potential of liquefied natural gas. Costs dramatically increased liquefaction projects threaten to slow its development as well. The increases are desperately needed in the liquefaction capacity could be delayed further if the projects are delayed or canceled in the face of cost increases.

If potential suppliers, in fact, able to overcome its economic problems and production to supply sufficient quantities of liquefied natural gas, which could achieve price convergence in the Atlantic Basin as a result of increased competition and shorter terms the contract. However, in the short and medium term, price convergence seems unlikely that the LNG market, simply faces too.

The Globalization of LNG Markets: Historical Context, Current Trends and Prospects for the Future

INTRODUCTION

Few people would argue that the global economy could operate in its current state, or continue to grow and provide prosperity in established economies and developing countries, without a continuous supply of abundant and affordable energy. The ways in which that energy is delivered and used are changing however. Whether it be oil, coal, nuclear, natural gas (hereinafter, natural gas) or renewable energy, energy needed to power the world we live in. questions surrounding the sustainability of energy supplies are in minds of consumers everywhere. Some might argue that traditional fossil fuels are rapidly disappearing and that the world economy will be devastated in a short time when they were blessed with resources and wasted, dried. Others argue that this view is alarmist exaggeration. Undeniable element of this discussion is that world energy demand has been increasing and will continue to grow for generations. The following figure is a forecast of demand for the Energy Information Agency (EIA) in Washington DC. While their predictions may not always be proven true, there is little discussion on the ...