Changing LNG Market Dynamics – Implications on Supply Security in the APEC Region

Over the last decade, the LNG market has been experiencing changing dynamics and challenges. As the largest LNG consuming region in the world, it is essential for APEC economies to understand these changes in order to better prepare for them. This study examines the changes facing the LNG industry and provides insights and implications for APEC economies to review and factor into their energy policies.

This report has five sections. The first section defines the scope of the study and discusses the definition of LNG supply security. The second section examines the recent changes in LNG project development, such as changes in LNG contracts, the increasing share of portfolio players and difficulties for LNG project construction. The third section reviews the transformation of LNG shipping, including technical developments in LNG carriers, changes in the LNG carrier market and how the portfolio model affects the carrier business model. The fourth section delves into the challenges of developing LNG terminals and gas storage. The last section summarises all the dynamics and challenges discussed in the previous chapters and outlines implications.