Gas 2025 Issue

Figure 1 LNG carriers navigating the high seas are equipped with the latest international safety protocols Courtesy of Shell International Limited

This includes advancements in LNG storage and cryogenic technology. For example, more efficient storage solutions, including floating storage regasification units (FSRUs), make LNG accessible to more markets. In support of these developments, AI-driven predictive maintenance and auto- mation improve plant uptime, reduce operational costs, and enhance safety. In the long term, the potential to blend hydrogen with LNG could position it as a long-term transition fuel towards a low-carbon future. However, this involves significant chal - lenges. For starters, LNG is stored at around -162°C, while hydrogen liquefies at -253°C, making it difficult to store and transport them together efficiently. Hydrogen can cause embrittlement in steel pipelines and infrastructure, poten- tially leading to safety concerns. Hydrogen has a higher flame speed and lower energy density than natural gas, requiring modifications to turbines, burners, and engines. At present, there are around 70 LNG terminals worldwide. Small-scale facilities such as the one in Nynäshamn are still the exception but offer a significant benefit, which is now boosting demand in other regions such as the Caribbean basin. The LNG market is projected to grow at a compound annual growth rate (CAGR) of more than 4.9% between 2025-2030, with most capacity coming from mega-LNG facilities. However, many of the niche margin opportunities are coming from ssLNG operations. Unlike mega facilities, modularised ssLNG facilities in the 0.5 to 2 million metric tonnes per annum (mmtpa) range can be brought online relatively quickly, reducing overall cost and complexity, such as the Eagle LNG Partners project in Jacksonville, Florida. Long-term ssLNG market prospects are favourable as island nations and smaller countries transition towards LNG

as a fuel option. Consequently, flexible US cargoes may prove to be attractive options. Currently, the mega-LNG owners are more exposed to price sensitivity regarding long-term con- tracts and other tolling agreements, making shut-ins of one or more LNG trains more likely in the short term. For exam- ple, the lack of a reliable power grid on the Caribbean islands predicates the benefits of modular LNG-powered generators in the 50 MW or less range. Demand for power India has become a major influencer in the global LNG market as it develops the infrastructure for importing LNG. Recent press reports noted that India’s gas-fired power generation doubled in the spring of 2024 to 8.9 billion kilo - watt-hours (kWh) compared with the same period in 2023. More than 75% of India’s power generation was from coal in 2023, while gas-fired plants have accounted for only about 2% in recent years, largely because of the high cost of gas relative to coal, which is why Indian refiners are mak - ing efforts to increase gas recovery from different refinery offgas and flaring operations. India’s domestically produced gas is largely being used for fertiliser production and cooking fuel in cities. Indian LNG imports are forecast to reach more than 28 million metric tons in 2025, up from 22.1 million tons in 2023, according to Independent Commodity Intelligence Services (ICIS). This is why other gas sources, such as refinery off - gas (ROG) recovery and the opportunity for cogeneration (from offgas), are important considerations going forwards. While renewables are growing in importance worldwide and will continue to do so, LNG is unique in its diversity of applications. For example, Vietnam is focusing on imported

Gas 2025