Set to increase by 50% between 2019 and 2022, Liquefied Natural Gas (LNG) is one of the fastest growing energy markets in the world. This spectacular growth is transforming the market with many new companies entering the sector and changing the industry landscape.
LNG currently accounts for 12% of all gas demand, increasingly vital because LNG is the fastest growing way to trade gas. Natural Gas is the only fossil fuel that increases in use even under the most stringent environmental policies, where the world’s nations incorporate policies to keep the global temperature increase below 2 degrees Celsius by 2050. Gas emits just 50% the CO2 that coal does and 30% of the CO2 emitted by oil. Today’s low gas prices are locking in the infrastructure that will only command more natural gas use as we move forward, and LNG is evolving natural gas into a global commodity like crude oil.
The LNG market is currently expanding rapidly, primarily driven by new liquefaction plants starting up in the U.S. and Australia. Global LNG production stood at around 265 million tonnes per annum (mtpa) in 2016, or 200 billion cubic meters (bcm). By 2020, the global supply of LNG is expected to be closer to 400 mtpa.
LNG shipping has evolved with the markets to provide customers with the latest technology in a strive for reduced fuel consumption, lower boil-off rates and optimal cargo capacity. The introduction of gas injection for LNG carriers through two-stroke propulsion, known as MEGI and X-DF, marks an important milestone in this regard. FLEX LNG’s newbuildings are powered with M-type, Electronically Controlled, Gas Injection (MEGI) engines – the most efficient LNG vessels on the water.