S’pore’s rationale for its S$1.5bn LNG terminal is energy security (see backgrounder).
But an unstated aim is S’pore’s desire to ride on China’s growth. China needs a lot more energy, and gas is clean and relatively cheap. There will be opportunities for traders to make use of the terminal to sell LNG to China and other countries.
Err that was the plan. So the analysis by Wood Mackenzie, an energy consultancy, that in China, coal gasification, coal bed methane and in particular shale gas are expected to supply more than 12bn cu ft per day by 2030, cannot be welcomed here.
Wood Mackenzie says China will need only half as much more LNG from 2020 onwards than it will require in the next decade, cutting the country’s need for new tanker-delivered LNG to 8m tonnes a year from 2020, against 16m annually during the next decade. Read the rest of this entry »