Leading executives remain upbeat on LNG future, despite current energy market doldrums

In a keynote address Helge Lund, ceo of BG Group, admitted the dominant themes at the moment were uncertainty and change. “Everyone in this industry has been impacted,” he said.

But he also believes gives an opportunity for the sector to relook how it works, noting that it was “not a twilight industry”.

BG is forecasting that LNG volumes will grow 4 – 6% a year to 2025, with most of this growth coming from China, India and Southeast Asia.

“We’re seeing a diversification of demand with more countries buying LNG.”

He said they were confident in seeing markets opening up in more countries and in “unlikely places”.

“Three years ago we would have not expected Egypt, Pakistan and Jordan to become LNG importers,” Lund noted.

The diversification in demand is being driven by both a demand for clean energy and the availability of smaller scale import infrastructure such as FSRUs.

Lund was not alone in his view that today’s LNG market presented opportunities despite the current difficulties.

Speaking at media briefing DNV GL president and ceo, Remi Erikson said: “Now is a great opportunity to get rid of inefficiencies in the value chain, in order to create a simpler, more transparent industry structure. This calls for more common standards and enhanced industry collaboration.”

Erikson noted DNV GL’s updated recommended common standards for the development and operation of LNG bunkering facilities as a good example.

Looking at LNG as a marine fuel, of which the classification society has been a strong proponent, he said the lack of regulations was the most important challenge.

The take-up of LNG as a marine fuel has been slower than it originally predicted DNV GL still believes it will be significant part of the mix in the future.

“We still believe that LNG will play a significant role as an alternative fuel in the maritime industry,” Erikson said.

“However, the mix of applied technologies will be broader. Vessels will use other low-flashpoint fuels and battery- hybrid propulsion systems. Also measures are being taken to reduce emissions through scrubbers, or even implementing completely new concepts.”