Gas Processing & LNG is Produced by Gulf Publishing Holdings LLC

Editorial Comment

Global gas is facing a demand hit from the coronavirus pandemic and a structural oversupply in the LNG market following the startups of new LNG export projects in Australia and the U.S. At present, 2020 is looking to be a rough year for LNG projects seeking FIDs, particularly those projects with final decisions delayed from 2019—which was itself a record year for LNG FIDs. However, strategists have warned that balking at too many prospective LNG projects will undermine supply/demand fundamentals in the next decade. The crisis surrounding the pandemic could serve as more of a balancing mechanism for LNG supply rather than a bottleneck—over the medium-term, at least. After the 2020s, however, more LNG will be required to meet continued growth in Asia’s burgeoning economies.

Worldwide, 19 large-scale LNG projects had been looking to secure FID in 2020, but nearly all of them have pushed their decisions to 2021 or later. Collectively, these 19 projects would add more than 200 MMtpy of new LNG supply between 2024 and 2027. Around one-third of these projects are located in the U.S. If the economic fallout from the pandemic-fueled collapse in oil prices delays FIDs for most of the undecided U.S. projects, it could mean far less LNG traveling from the U.S. to Asia in the second half of the decade. On top of depressed oil prices, failure by exporters to secure supply agreements with key Asian buyers, such as China and India, may challenge several of the tentative U.S. projects. Other delayed LNG projects could be effectively canceled unless they reach positive FID by mid-2021 amid improving economic conditions. GP

Copyright © 2019. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo


Editorial Comment: China eyes continued expansion of smaller-scale LNG
-Adrienne Blume
Smaller-scale liquefaction in China, the world’s second-largest LNG importer, has experienced growth in recent years as China’s government integrates more gas into the country’s energy matrix.
Executive Q&A Viewpoint: SeaOne expands South American energy options with Compressed Gas Liquid technology
-Bruce Hall
SeaOne is a midstream infrastructure and logistics company that leverages its patented Compressed Gas Liquid (CGL™) technology to lower energy costs in various markets, generating new opportunities for economic growth and environmental stewardship.

Corrosion Control for Gas Treating Amines: Technology Leads to Increased Amine Unit Efficiency

Register Now

Accelerated basin drilling activities combined with increased fugitive gas emission capture technologies have increased trace oxygen levels in midstream natural gas. Oxygen present in concentrations even as low 30-50 ppm will cause costly corrosion-related problems in plant operations and processing equipment. One area in the plant most affected by oxygen is the amine unit. Oxygen will degrade MDEA-blended amines to corrosive amino acids and heat-stable amine salts.

Learn how a new technology from BASF combined with innovation from Nalco Water can increase amine efficiency and reduce costs associated with corrosion. This new technology will inhibit the degradation of amines from oxygen attack and control corrosion in process gas, while stabilizing the amine from degradation into bicine and other heat-stable amine salts. Together with Nalco Water’s real-time amine corrosion control program, have been proven to both mitigate oxygen degradation of amine and reduce the overall corrosivity of amine units.

August 19, 2020 10:00 AM CDT

Register Now


Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2020 Gulf Publishing Holdings LLC.