BG Group LNG a globalising industry Are we there yet Martin Houston Barcelona, Spain 24 April 2007
A globalising industry What do we mean by a global market How far have we come Challenges Are we there yet 2
Global gas trade the recent past Algeria Middle East Trinidad W. Africa S.E. Asia Australia Markets LNG Pipe Source: BG Group 4
Market evolution towards what Market evolution A transparent & efficient market y Market is equitable & balanced y Maximum growth for gas International Price Trade International Trade y Energy security trade connectivity…
Changing industry focus LNG trade (mtpa) 200 North America 180 Europe 160 140 Asia Pacific 120 100 80 60 40 20 0 Atlantic Pacific Atlantic Pacific Atlantic Pacific Basin Basin Basin Basin Basin Basin 2005 2010…
Lake Charles terminal, Louisiana 7
US LNG imports 2004 2006 100 Lake Charles 90 Cove Pt + Elba Island + Everett + Energy Bridge 80 70 60 Bcf 50 40 30 20 10 0 Jan Feb June Jan Feb June Jan Feb June Oct Oct Oct…
Supply & Optimisation 2006 Norway UK Belgium France S. Korea USA Italy Spain Japan India Taiwan Mexico Egypt Trinidad Nigeria Equity positions 3rd Party Existing import capacity Markets supplied in 2006 Existing…
Market evolution a recap Market evolution A transparent & efficient market y Market is equitable & balanced y Maximum growth for gas International Price Trade International Trade y Energy security trade connectivity flexibility…
Challenges Access to resources Access to some markets Capabilities Existing agreements Business models Costs 12
Global gas trade evolution Norway / Russia Sakhalin Middle East N.Africa Egypt W. Africa Trin / Ven S.E. Asia S. America Australia Markets LNG Existing & proposed Primary (20 mtpa) Pipe LNG trade routes Secondary…
Differentiated market characteristics Liquid markets Traditional markets Integrated chains Bilateral trades Short-term Long-term diversions contracts Market index Oil price indexation High market Limited market liquidity…
Conclusion dimensioning global markets LNG market connectivity & trade flexibility increasing US has emerged as the balancing market Flexibility has increased significantly liquidity has not International gas markets more truly…
BG Group
LNG a Globalizing Industry Are we there yet LNG 15 24 April 2007 Martin Houston Executive Vice President & Managing Director, North America, Caribbean and Global LNG BG Group
Martin Houston Executive Vice President & Managing Director, North America, Caribbean and Global LNG Martin Houston joined British Gas in 1983 and was appointed Executive Vice President in 2000. Based in Houston, he is currently…
Mr Chairman, thank you. It was a very different world and today, as we all know, this is not the case at all. Im delighted to be here in Barcelona and to have the opportunity to talk about BGs views LNG costs have, until recently,…
according to their own risk and return The Elba Island, Cove Point and Everett appetites. terminals in grey on this slide imported an average of 40 billion cubic feet (bcf) per month In the crude markets, excess ullage in the at a…
In 2006, just over 3.5 million tonnes was Were already seeing this taking place in Chile, supplied from Atlantic Basin projects into where we are building a regasification terminal Asian markets. These were largely diverted that we will…
Gradual evolution The US has become a swing or balancing This is not to underplay the changes that have market, weve seen that first hand at Lake occurred already. Charles. Its an unequivocal fact that the breadth and And there is a…
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