By Sachin Kumar
DOHA: The share of Liquefied Natural Gas (LNG) in the gas market is poised to grow according to International Gas Union Report (IGU). The growth will be driven by environmental, commercial and safety aspects.
“LNG supply has grown faster than any other source of gas, at an average 7 percent per year since 2000, and is poised to expand its share of the gas market to 2020,” said World LNG Report released by IGU. “The outlook for LNG as fuel is very positive and continues to gain momentum,” it added.
Currently natural gas accounts for around 25 percent of global energy demand, of which 10 percent is supplied in the form of LNG. The share of LNG was just four percent in 1990.
Qatar is the largest exporter of LNG in the world and it exported nearly 77 million tonnes (MT) of LNG in 2014 which was approximately one-third of global supply.
“Globally, LNG trade reached 241.1 MT in 2014, a 4.3 MT increase over 2013 levels. This marked the second highest year for LNG trade on record, just short of the 241.5 MT traded in 2011,” said the report.
LNG boasts a number of advantages, which are driving its growth. It is a clean-burning fuel whose combustion generates no unburned residues, particulates or soot, and releases less greenhouse gas than the other fossil fuels.
Its high calorific value allows latest-generation power plants to achieve high energy efficiency using cogeneration or combined cycle configurations, limiting both energy consumption and atmospheric emissions. On the strength of these advantages, the share of natural gas in power generation is projected to rise from 20 percent in 2004 to nearly 25 percent in 2030.
There is growing global interest to reduce emissions. According to the US Energy Information Agency’s (EIA) 2014 International Energy Outlook reference case, world petroleum and other liquids consumption is forecast to grow by 38 percent between 2010 and 2040. This increased consumption will be accompanied by growth in associated greenhouse gas emissions, forecast to increase 45 percent by 2040. The world is on a trajectory toward long-term temperature increases, far above the internationally agreed target. As a result the global climate debate is driving change for cleaner burning gas and alternate fuels.
“From an environmental emissions perspective, LNG as fuel is a viable mitigant, significantly reducing emissions of carbon dioxide by up to 20 percent, sulfur oxide up to 100 percent, nitrogen oxide up to 90 percent and particulate matter up to 99 percent. The maritime industry is the low hanging fruit leading the transition to LNG as fuel, primarily due to global concern about emissions,” said the report. The On-Road transportation sector, which is the largest contributor to transportation emissions, has the potential to have the greatest impact on reducing emissions by using LNG as a fuel supply in the heavy vehicle fleet, characterised by high utilisation on defined corridors and regular schedules,” added the report.
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