LNG TO FILL IN FOR GAS

The good news about rising LNG use: LNG is a LOT cleaner than coal. The bad news: LNG is NOT CLEAN and it is NOT RENEWABLE.

LNG Summit: LNG key to meeting world demand to 2030
Warren R. True, December 4, 2007 (Oil & Gas Journal)

WHO
Tom Cordano, president, ExxonMobil LNG Market Development Inc.

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WHAT
In a speech to the 8th LNG Summit, Cordano predicted that as energy demand steadily rises over the next quarter century, LNG and pipeline-supplied natural gas use will rise faster than oil or coal.

WHEN
- World energy demand 2005 through 2030 will rise 1.3% per year (= 120,000,000 barrels of oil-equivalent per day).
- Natural gas use 2005 through 2030 will rise 1.7% per year (whereas from 1985 through 2005, natural gas use rose 2.4% per year).

WHERE
- The LNG summit was in Rome.
- Biggest increases in natural gas use will come in Asia and the Middle East.
- Asia’s demand will continue to be led by Japan and South Korea.
- North America and Europe will also increase natural gas use.

WHY
- North American domestic supply of pipeline gas and LNG will decline as will Europe’s access to Russian and North Sea supplies.
LNG global demand will go up to 500,000 tonnes/year and Asia will account for 75% of it.
- Technology advances in every part of the value chain over the last 3 years are driving growth: Larger, more efficient trains; larger, more efficient LNG carriers; and larger designs of terminals. Against this is the rapidly rising cost of material and labor, driving project costs up nearly 80%.

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QUOTES
Cordano’s predictions: [North American will have [rapid decline in supplies [of domestic natural gas and Europe will have a] rapid deterioration in existing supplies from Russia and the North Sea."