Category: Report
FLNG Report 2015-2018
The scope of the study group “FLNG concepts (LNG FPSO & FSRU), facts and differentiators” was to explore the floating LNG concept’s evolution in the recent years, as to provide a view on the trending facts and driving differentiators for the potential use of this concept, in the LNG industry.
Floating LNG concepts are
- LNG FSRUs: Floating storage and regasification units and
- LNG FPSOs: Floating liquefaction, storage and offloading units.
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Case Studies in Improving Urban Air Quality – Third Edition, March 2018
This is the International Gas Union’s (IGU) third Urban Air Quality report. Each study compellingly demonstrates that switching to natural gas for power generation, heating, industry and transport dramatically improves air quality around the world – thereby enhancing and saving human lives. The first report, released at COP 21 in Paris, presented case studies of efforts in four mega cities — New York, Istanbul, Toronto, and Beijing — to improve urban air quality. The second edition of the report was released in Strasbourg, during 2016 Gas Week at the European Parliament. It featured efforts to improve air quality in three European cities: Berlin, Dublin, and Krakow; as well as the Port of Rotterdam.
This third edition continues to build on the previous work to highlight the efforts to improve urban air quality. This edition provides an update on efforts in Beijing and includes two additional examples of major actions in the Chinese cities of Urumqi and Shanghai. It also extends to South America, with an example of air quality improvements in Santiago, Chile.
Published on March 28, 2018 Download PDF (1 MB)Want to download this file?
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The Natural Gas Industry Methane Emissions Challenge
The International Gas Union (IGU) supports urgent and increased efforts towards climate change mitigation, consistent with the Paris Agreement and its goal to limit the global temperature increase to below 2oC from pre-industrial levels by the end of the century. Several nationally determined contributions under the Paris Agreement include a focus on reducing methane emissions, amongst other measures.1 The natural gas industry has had a long history of mitigating methane emissions.
Methane is the primary component of natural gas, and reductions of methane emissions are important for operational efficiency, safety, and environmental excellence. The IGU supports prudent, outcome-driven policy regimes for greenhouse gas (GHG) mitigation. Effective policies to minimize anthropogenic methane emissions are those that take balanced approaches, consistently addressing all contributing sources of methane emissions across the economy.
The IGU recommends that as governments formulate policies for reducing methane emissions, they:
• Commit to a balanced GHG reduction strategy, which covers long and short-lived pollutants. Avoid disproportionate emphasis on short-lived pollutants, like methane, to secure the long-term target of meeting CO2 reductions and 2oC temperature increase limit.
• When regulation is deemed necessary, choose a performance-based approach over compliance-based to ensure policies are economically efficient – balancing regulation with market-based mechanisms. This means that policies should seek to maximize the value of reductions, by allowing sufficient flexibility for the industry to identify opportunities for investment to achieve the highest reductions.
• Support technology development and deployment to accelerate innovation in methane detection and measurement. There has been much progress in the development of next-generation technologies, some of which could become game changers; however, these still need to become commercially viable. In order to accelerate the pace of innovation and de-risk new technology, governments need to partner with industry and fund essential research and development.
Published on October 19, 2017 Download PDF (773 KB)Want to download this file?
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Understanding Methane’s Impact on Climate Change
Climate change is a uniquely long-term problem, which can lead to potentially irreversible changes in the Earth’s climate system.
The long-term climate impacts of unmitigated greenhouse gases (GHG) emissions are well-understood—thanks in a large part to the efforts by the UN IPCC and the rest of the scientific community—and the confidence level in these long-term effects has risen over time.
The most devastating potential impacts of climate change—such as rising sea levels, ocean acidification, or the melting of ice sheets—play out over multiple decades or even centuries.
The risk of abrupt, non-linear changes in the climate system also likely increases with rising global temperature levels. However, using only a very short timeframe for estimating climate impacts, like 20 years, would excessively weigh near-term impacts, understating the effect of long-term GHG accumulation on total warming by the end of the century, and thereafter.
The use of GWP factor of 100 years yields a balanced approach to an effective outcome for climate policy, as MIT researchers put it: A 20-year GWP would emphasize the near-term impact of methane but ignore serious longer-term risks of climate change from GHG’s that will remain in the atmosphere for hundreds to thousands of years, and the 500-year value would miss important effects over the current century. Methane is a more powerful GHG than CO2, and its combination of potency and short life yields the 100- year GWP used in this study.
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IGU Wholesale Gas Price Report 2017
The 2016 IGU Wholesale Gas Price survey is the ninth to be undertaken in a series which began 10 years ago. The nine surveys have confirmed the significant changes in wholesale price formation mechanisms during a period of key developments and upheaval in the global gas market. The highlights of the 2016 survey are:
• Gas-on-gas competition (GOG) had the largest share of total world consumption at 45%, predominantly in North America, Europe, the Former Soviet Union and Latin America. The oil price escalation (OPE) share stood at 20%, and is predominantly Asia Pacific, Asia and Europe. The regulated categories – regulated cost of service (RCS), regulated social and political (RSP) and regulated below cost (RBC) – account in total for some 31%. RCS is mainly the Former Soviet Union, Asia and Africa, RSP mainly the Middle East, Former Soviet Union, Latin America and Asia Pacific and RBC the Former Soviet Union, Latin America and Africa. Figure 1.1 Regional Price Formation 2016 – Total Consumption
• Cross border flows of gas account for some 28% of total world consumption. Pipeline imports are now over 57% GOG, with OPE at 35%, while OPE has 76% of LNG imports with GOG at 24%. • Between 2015 and 2016, the GOG share was broadly unchanged, with an increase in the share in Europe being offset by declines in Asia and Asia Pacific, reflecting fewer pure spot LNG cargoes. The OPE share increased by 1.5 percentage points, reflecting a small rise in Europe at the expense of BIM (in Turkey), but principally in Asia and Asia Pacific, as the share in LNG imports increased, but also reflecting a rise in domestic production in China, as the full year effect of the change in city-gate pricing came through. The RCS share declined by half a percentage point, principally reflecting the changes in China, partly offset by a rise in Iran in gas as a feedstock to petrochemicals, and faster consumption growth in some countries with RCS pricing. The RSP share was down by half a percentage point as a result of declines in the Middle East – Iran – and the FSU, principally in Russia with switching to GOG and RCS. The RBC share was unchanged.
Published on July 4, 2017 Download PDF (1 MB)Want to download this file?
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IGU World LNG Report 2017
Liquefied natural gas (LNG) experienced a dynamic 2016, with global trade reaching a record 258 million tonnes (MT), an increase of 13 MT over 2015. Supply ramped up at projects spanning the globe, from the United States to Australia, and LNG found new markets in a diverse array of countries. At the same time, delays and plant outages kept supply growth subdued. LNG prices remained below the cost of new supply as demand grows to reach balance.
As the advantages of natural gas in the global energy mix become increasingly apparent to governments, businesses and consumers around the world, 2016 saw some encouraging trends in LNG. The much-awaited tranche of US LNG production began with Sabine Pass Trains 1&2 entering commercial operation. The ramp-up in Australia continued as well, with Gorgon LNG Trains 1&2 and Australia Pacific LNG starting commercial operation, coupled with new train additions at Gladstone LNG and Queensland Curtis LNG. Keen interest in LNG was also evidenced by more than 879 MTPA of proposed project development, concentrated in North America, East Africa and Asia Pacific. On the demand side, LNG continued to find new markets as a fuel of choice for existing grids that have limited indigenous production, such as Egypt and Pakistan, with combined growth of 6 MT. New niche markets have also developed that prefer clean, flexible fuel for power generation, such as Jamaica and Malta. China’s LNG consumption increased dramatically, by nearly 35%, to around 27 MTPA.
At the same time, however, the two largest markets – Japan and South Korea – are showing signs of satiation, as nuclear, coal and renewables find their balance in the power mix. With a rebound in hydro-power reservoir levels, Brazilian demand for LNG was down 80% (4 MT), demonstrating the flexible value of LNG.
As LNG prices continue in a competitive range, opportunities for demand growth in 2017 abound globally. Trends in floating storage regasification units (FRSUs) and LNG bunkering are shaping the LNG industry. FRSU new-builds and conversions are expanding access for emerging LNG markets and will continue to help absorb supply. LNG is increasingly seen as a vital bunkering fuel for maritime transport as well. Last year, for example, the Port of Rotterdam installed its third LNG fueling berth, as the benefits of switching to natural gas become increasingly apparent. Switching to LNG in the port can reduce NOx emissions by up to 90% and SOx and particulate emissions by up to 100%. These trends must all be seen in a wider context. It is not an exaggeration to say that the increased uptake of natural gas has direct and positive impacts on the environment and on human health around the world. In a post-COP 21 world, gas must become an increasingly vital part of the future energy mix.
IGU continues to advocate vigorously for the benefits of natural gas, and the LNG industry plays a key role in expanding access to gas across the globe. The World LNG Report, a flagship publication of IGU first published in 2010 and now published annually, provides key insights into the LNG industry. It remains a standard desk reference on the LNG industry around the world.
Published on April 5, 2017 Download PDF (5 MB)Want to download this file?
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Enabling Clean Marine Transportation, March 2017
Liquefied Natural Gas, or LNG as marine fuel offers substantial advantages over traditional marine petroleum fuels in emissions reduction. It meets the stricter pollution regulations by the International Maritime Organisation (IMO) and regional air quality controls. Using LNG will reduce harmful air pollutants significantly below all current and proposed emissions standards. A switch to liquefied natural gas will immediately result in these reductions and persist for the life of the vessel. The case for using LNG fuel for shipping is clear, as it will provide significant quality of life improvement by addressing one of today’s most pressing environmental challenges – air pollution. It will also support climate change goals by reducing greenhouse gases (GHG’s).4 This situation is a key barrier facing LNG marine deployment globally, and governments must be encouraged to set clear regulatory guidelines that are essential in achieving broader and feet-wide conversions. While marine transportation is the most carbon-efficient mode of transport, in terms of CO2 emitted per unit of cargo, compared to road, air, or rail, the massive scale of shipping activities generates significant emissions, in absolute terms.5 The main pollutants of concern are sulphur dioxide (SO2 ), nitrogen oxides (NOx), carbon monoxide (CO), black carbon, particulate matter (PM), and CO2
Published on March 1, 2017 Download PDF (3 MB)Want to download this file?
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Global Gas Markets Supporting Growth and Sustainability
CLEAN
As the cleanest burning fossil fuel, natural gas is well positioned to play a growing role in the world’s future energy mix. When used in place of higher-emitting coal and oil, natural gas can help reduce global greenhouse gas emissions, improve air quality and provide access to affordable and clean energy in rich and poor countries alike
INTERCONNECTED
Gas markets around the world are increasingly interconnected, and low-cost floating regasification technology allows a growing number of countries to quickly tap into the global LNG trade. Thanks to an unprecedented wave of investment in new LNG export capacity, the rapid expansion of global natural gas trade is set to continue through 2020 and beyond. The global gas market has entered a period of abundance with lower gas prices across the main importing regions. To benefit from a buyer’s market, prospective natural gas importers will have to invest in new infrastructure, including regasification terminals, pipelines, electricity networks and gas-fired power plants.
MARKET LIBERIZATION
Natural gas is thriving mainly due to its intrinsic advantages as a relatively clean, versatile, and abundant fossil fuel. But further market liberalization, greater gas-on-gas competition and a strong carbon price signal could accelerate gas’ growing share in the future energy mix and provide public policy benefits. A relatively high and predict able carbon price would facilitate longer-term substitution of coal in particular. But even where carbon pricing exists, price levels are often too low to influence fuel choice or investment decisions.
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Case studies Improving Air Quality, Second edition (European cities), November 2016
The entry into force on November 4, 2016, of the Paris Agreement, reflects the priority given to tackling climate change at the highest levels of global political leadership. As of October 2016, as many as 86 countries have ratified the agreement, including the US, China and India, which are among the world’s largest emitters. The European Union, which officially joined the Paris agreement in October 2016, plans to continue taking a leadership role in driving climate action.
In addition to climate change, air pollution is an increasing priority for local, national and international governance. Around the world, 300 million children, mostly in South Asia, breathe highly toxic air because of dangerous pollutants like air particles known as PM2.5. Despite significant improvements in urban air quality in the past decades, air pollution remains a serious problem across much of the European Union too. The human and health-related costs associated with air pollution are immense. The European Environmental Agency estimates that in 2012 fine particulate emissions alone caused more than 400,000 premature deaths within the European Union (EU). The direct economic cost of air pollution in the EU was around EUR 23 billion ($25 billion) in 2010, and the total health-related costs associated with air pollution (including both direct and indirect costs) could have been as high as EUR 940 billion ($1,025 billion) in the European Commission’s estimate.
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