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Home >
LNG as a Price Driver
Report
Published: August 2009
Pages: 85
Tables: For full details, please email keithw@cmsinfo.com
From: GBP 3559.38 Buy Now!
Research from: Datamonitor
Sector: Oil & Gas
Introduction
The global LNG sector is in a state of flux. A new tranche of LNG liquefaction capacity has come on-stream in response to bullish energy demand prior to 2008. The subsequent financial crisis and the boom in US unconventional gas extraction has created a glut in the market. Such developments are having an increasing impact on European LNG metrics, in turn impacting on retail prices.
Scope
*A detailed introduction to how the LNG market has developed regionally and what drives current growth in Europe
*An overview of how LNG interacts with gas and other sources of power generation, with particular emphasis on interplay with new and existing pipelines
*A set of price case scenarios for European LNG prices, encapsulating the effects of financial markets, geopolitics, technology and legislation
*A unique econometric model designed to explore the effects of upstream LNG changes on European retail prices and utilities' margins
Highlights
The current rash of new liquefaction capacity coming on-stream combined with the effects of the global financial crisis will subdue European LNG prices in the near term. This will be exaggerated in the short-term by on-going growth of unconventional gas extraction in the US and the addition of new pipelines into Europe
The differentiation between states' fiscal regimes and the margins utilities receive means the role wholesale costs play in overall retail prices varies across Europe. The impact of LNG price changes is essentially determined by artificial inputs. This is the case albeit to a lesser extent even in countries which rely heavily on LNG over pipes
Assuming current retail margins are maintained to 2015, residential retail prices in Germany and France will be most affected by LNG-driven wholesale price increases. Low margins in states such as Spain cushion the effects of LNG price rises, even though Spain relies far more on LNG than on pipelines.
Reasons to Purchase
*Understand the international LNG trade, and its impact on gas retailing businesses across key European markets
*Gain insight into wholesale gas supply trends, and the link between upstream supply scenarios and the retail market
*Explore your own assumptions using the interactive model; testing the impact of different global LNG scenarios on retail prices and margins
The global LNG sector is in a state of flux. A new tranche of LNG liquefaction capacity has come on-stream in response to bullish energy demand prior to 2008. The subsequent financial crisis and the boom in US unconventional gas extraction has created a glut in the market. Such developments are having an increasing impact on European LNG metrics, in turn impacting on retail prices.
Scope
*A detailed introduction to how the LNG market has developed regionally and what drives current growth in Europe
*An overview of how LNG interacts with gas and other sources of power generation, with particular emphasis on interplay with new and existing pipelines
*A set of price case scenarios for European LNG prices, encapsulating the effects of financial markets, geopolitics, technology and legislation
*A unique econometric model designed to explore the effects of upstream LNG changes on European retail prices and utilities' margins
Highlights
The current rash of new liquefaction capacity coming on-stream combined with the effects of the global financial crisis will subdue European LNG prices in the near term. This will be exaggerated in the short-term by on-going growth of unconventional gas extraction in the US and the addition of new pipelines into Europe
The differentiation between states' fiscal regimes and the margins utilities receive means the role wholesale costs play in overall retail prices varies across Europe. The impact of LNG price changes is essentially determined by artificial inputs. This is the case albeit to a lesser extent even in countries which rely heavily on LNG over pipes
Assuming current retail margins are maintained to 2015, residential retail prices in Germany and France will be most affected by LNG-driven wholesale price increases. Low margins in states such as Spain cushion the effects of LNG price rises, even though Spain relies far more on LNG than on pipelines.
Reasons to Purchase
*Understand the international LNG trade, and its impact on gas retailing businesses across key European markets
*Gain insight into wholesale gas supply trends, and the link between upstream supply scenarios and the retail market
*Explore your own assumptions using the interactive model; testing the impact of different global LNG scenarios on retail prices and margins