The future of liquefied natural gas trade

Abstract

Previously disconnected regional natural gas markets are becoming increasingly integrated, largely due to liquefied natural gas (LNG) trade. Some factors are accelerating this trend, such as rapid demand growth, climate change policy, a desire to avoid transit country risks associated with pipelines, and seasonality in demand. However, other factors are acting to inhibit global market development, such as geopolitics, market structure, the emergence of unconventional sources of gas supply, and a move to alternative energy. The manner in which these forces act to offset or reinforce each other will be crucial to the nature of global LNG trade in years to come. © 2009 Springer-Verlag Berlin Heidelberg.