With more and more country finding scarcity for energy resources, LNG, which once was considered regional commodity is now set to become a globally traded commodity as expected by analysts. Liquefied natural gas (LNG) upcoming LNG projects are skyrocketing, especially as oil production and gas recovery is increasing in the Middle East.
Liquefaction capacity is expected to rise 30% with shipping capacity will increase by 50% by end of 2010. The main contributing factor that leads to the move of becoming globally trading commodity comes from trading structure for the upcoming supply of LNG - a more flexible rather than relying on long-term contracts.
Moreover, new supply destined for North America, the largest natural gas market in the world will play a massive role in pricing and LNG contracts. North America's has a vast storage capacity of 4,000 bcf expected to act as a buffer against market prices movement.
Liquefaction capacity is expected to rise 30% with shipping capacity will increase by 50% by end of 2010. The main contributing factor that leads to the move of becoming globally trading commodity comes from trading structure for the upcoming supply of LNG - a more flexible rather than relying on long-term contracts.
Moreover, new supply destined for North America, the largest natural gas market in the world will play a massive role in pricing and LNG contracts. North America's has a vast storage capacity of 4,000 bcf expected to act as a buffer against market prices movement.
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