Editorial comment

A. Blume, Editor

LNG is an increasingly important source of energy for gas importers and a growing business for gas exporters. Global trade of LNG increased by 2.4% worldwide in 2014, according to BP data. Improved flexibility in LNG and pipeline deliveries is one result of the deeper integration of international gas markets. Within individual nations, greater integration of regional gas markets is helping coordinate production and demand.

A number of technology developments in recent years—such as floating LNG barges and small-scale LNG facilities—are also broadening the landscape of the LNG sector and tailoring LNG production for a variety of applications and locations. These new developments complement the large number of traditional, large-scale natural gas liquefaction terminals that are proposed and under construction around the world. More than $700 B could be invested in LNG facilities worldwide through 2035 (with more than half of this amount allocated to North American facilities), thereby speeding up the integration of regional gas markets and improving gas supply security.

Analysts expect that only a fraction of these LNG export projects will be built, as high capital expenditures and the threats of price volatility and a possible glut of LNG capacity past 2020 threaten projects under development. Nonetheless, large gas reserve discoveries both onshore and offshore have spurred high hopes for gas export revenues in several gas-rich regions and countries.

This month’s special report examines alternative and recommended designs for LNG facilities and equipment. Accompanying articles delve into the establishment of energy networks through small-scale gas plants and localized production and delivery systems. GP