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Global LNG Markets: Implications for Alaska
Damian BilbaoDirector, Business Development Alaska LNGNovember 2015
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Worlds first LNG Tanker
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LNG Tankers Today
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Alaska was a pioneer of the modern LNG industry:LNG trade flows in 1970
Source:�BP�Internal
LNG export 5 Mtpa (0.65 bcf/d)
LNG import 10 Mtpa (1.3 bcf/d)
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South East Asia to Japan and Algeria to Europe trades dominating global scene by mid 1980s
LNG export 5 Mtpa
LNG import 10 MtpaSource:�BP�Statistical�Review�of�World�Energy
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Little change in the nature of global LNG trade by mid 1990s but still scaling up
LNG export 5 Mtpa
LNG import 10 MtpaSource:�BP�Statistical�Review�of�World�Energy
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By 2005, broader Atlantic Basin market evolving and Mid East suppliers beginning to play balancing role
LNG export 5 Mtpa
LNG import 10 MtpaSource:�BP�Statistical�Review�of�World�Energy
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LNG has now evolved into a global businessLNG trade flows in 2015
Source:�BP�Statistical�Review�of�World�Energy
LNG export 5 Mtpa
LNG import 10 Mtpa
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33 LNG trains under construction will add 143 Mtpa capacity by the end of 2018, increasing global production by ~50%
Source:�project�announcements
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A similar volume of prospective capacity is attempting to move Final Investment Decision
Under construction
Prospective (not exhaustive) Source:�project�announcements
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Likely that market will favor LNG buyers over at least the early portion of Alaska LNG development cycle
• Prices have weakened on lower oil prices and weak
Asian demand
• Successful projects will need to be cost competitive
and flexible
• Buyers have multiple options for next generation of
new supply
• Asian growth to remain strong, led by China
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Alaska LNG – Keys to Success
• Competitive cost of supply
• Parties aligned on solutions
• Reputation as a reliable future energy source
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