Global gas is facing a demand hit from the coronavirus pandemic and a structural oversupply in the LNG market following the startups of new LNG export projects in Australia and the U.S. At present, 2020 is looking to be a rough year for LNG projects seeking FIDs, particularly those projects with final decisions delayed from 2019—which was itself a record year for LNG FIDs. However, strategists have warned that balking at too many prospective LNG projects will undermine supply/demand fundamentals in the next decade. The crisis surrounding the pandemic could serve as more of a balancing mechanism for LNG supply rather than a bottleneck—over the medium-term, at least. After the 2020s, however, more LNG will be required to meet continued growth in Asia’s burgeoning economies.
Worldwide, 19 large-scale LNG projects had been looking to secure FID in 2020, but nearly all of them have pushed their decisions to 2021 or later. Collectively, these 19 projects would add more than 200 MMtpy of new LNG supply between 2024 and 2027. Around one-third of these projects are located in the U.S. If the economic fallout from the pandemic-fueled collapse in oil prices delays FIDs for most of the undecided U.S. projects, it could mean far less LNG traveling from the U.S. to Asia in the second half of the decade. On top of depressed oil prices, failure by exporters to secure supply agreements with key Asian buyers, such as China and India, may challenge several of the tentative U.S. projects. Other delayed LNG projects could be effectively canceled unless they reach positive FID by mid-2021 amid improving economic conditions. GP
The quest for plant availability: Achieving improved compressor reliability and efficiency in downstream operations
Plants in the downstream industry require a great degree of operational availability, equipment reliability and efficiency: These factors are crucial for end users, as thousands of complex and intricate processes are operating in parallel – many of them are driven and safeguarded by compression technologies.
Uniformly, reliability is a universal maxim, and this holds particularly true for handling and compressing challenging gases processed in such plants. In fact, there is a direct, vital link between the reliability of compressor equipment designed for and used in these processes and the availability of the plant.
With a focus on different chemical/petrochemical, syngas and LNG applications our speaker Ulrich Schmitz will introduce to the listeners how centrifugal compression technologies such as integrally geared can be designed and employed reliably to perform the key process challenges of the industry, while also contributing to an efficient operation.
September 24, 2020 10:00 AM CDT