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LNG, the way to go, Hamworthy pumps.
steveb3 - Wed, 28 Dec 05 :
Political Will Backs Growth In LNG Sector Despite Objections - Lloyd's List Special Report,
It is estimated that by 2030 the US will take 25% of world imports.
Preparing for the arrival of increased LNG volumes is a sensitive business in the ports industry. As have been shown clearly in the US, where more than 40 LNG receiveing terminals are planned, environmentalists have strong concerns, there are fears over terrorists targeting the LNG sector and there is also a " not on my doorstep" lobby.
The bottom line reality is, however, that the spread of LNG out of its traditional marketplace in the Far East to the US Pacific coast and Atlantic basin is not happening without a certain degree of political will behind it.
Undoubtably, a number of port-based projects in the receiving nations will fail due to objections in one or more of the above categories but overall the assessment is that enough new capacity will be put in place at the right time.
Indicative of the political will that will play a large part in achieving this, is President George W Bush's speech made earlier this year when he effectively came down on the side of granting federal authorities the right to overule states when it comes to approving LNG projects and encouraged Congress to clarify the powers of the US Federal Energy Regulatory Commission in this respect.
Equally significant, FERC has moved swiftly to approve a number of the 40-plus pending LNG terminal projects and is forecasting that at least ten of these schemes will receive approval. It is not without some justification that energy companies such as ExxonMobil estimate that by 2030 North America will account for around 25% of global LNG imports. And this of course will be in the context of a much expanded supply picture - in the ten year period alone the global trade will double to at least 200mt.
Practicalities also suggest that the establishment of the LNG supply lines from gas field to process plant will advance according to a well thought out and planned schedule.
In the UK, the national Grid Transco's Isle of Grain LNG Terminal is at an advanced stage of development and the country's other two terminals at Milford Haven also have a clear path for development.
In Spain, the construction of new import terminal capacity is well under way in Sagunto, the satellite port of Valencia. And in the Netherlands the Dutch Minister of Economic Affairs has reacted favourable to the proposals announced by Petroplus and Vodak/Gasunie for two separate import terminals.
There are planning and feasibility hurdles to clear but commercial entities such as the latter ones are not naive in this respect; they have been round the block before and have come to the table with a great deal of work done already.
Vodak and Gasunie,for instance, identified a potential terminal on Rotterdam's Maasvlakte following an initial study into potential suitable locations in the country, dealing with key issues such as environmental factors, nautical matters and connections to the Dutch gas transport network. They also plan to continue looking into other potential locations while detailed feasibility studies take place into the Maasvlakte site.
The latter sort of approach charectarised by planning preparation and a back up plan is one employed by many companies in the gas sector as they seek to establish new import terminal capacity. It is doubtless one that will pay dividends at a practical level, putting the right import capacity in place, and make easier the politicians' job of facilitating.
So too will the broad-based recognition in the LNG industry that it faces a significant challenge in this huge expansion period when it comes to maintaining standards and dealing with commercial risk.
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