SOURCE: Zeus Development Corporation

Zeus Virtual Energy Library

December 09, 2010 13:12 ET

LNG Downstream Distribution Growing at Twice the Pace of World Trade, Zeus Conference to Examine Opportunities

HOUSTON, TX--(Marketwire - December 9, 2010) -  A survey of transport fleets and equipment manufacturers by Zeus Development Corp has determined that the world fleet of LNG tank trailers has grown eightfold in little more than a decade, from 250 units to more than 2,000. Increasingly, LNG is being transported beyond import terminals by shuttle tankers, rail, barges and trucks to markets that depend on petroleum. 

"In every market, LNG increasingly resembles a commodity product akin to LPG," said Bob Nimocks, president of Zeus. "While LNG world trade is largely closed to small and medium-sized companies, downstream distribution is wide open and exciting."

The survey identified several drivers that are prompting developers to seek ways to distribute LNG. The principle incentive, though, is raw economics: two to three times the amount of energy can be purchased as natural gas than as petroleum. LNG offers more flexibility for many consumers than pipeline gas. 

 In those markets where governments are imposing taxes on carbon or incentivizing increased domestic fuel consumption, the pace is even faster. Norway, Sweden, China, and the Dominican Republic are examples where downstream LNG markets have been doubling annually. A regional LNG distribution network now exists in Scandinavia, with increasing amounts fueling marine vessels. 

 "With the spread of shale, tight-sand and coal-seam production technologies, more countries are finding they have the gas reserves to back out imported oil," Nimocks said. "These countries view LNG as a means to expedite delivery systems while converting heavy fleets to run on natural gas."

In April, Russia announced plans to deliver LNG overland to hasten its efforts toward nationwide gas distribution. The government intends to deregulate price controls on gas supplied domestically by 2014. Gazprom is building infrastructure for planned LNG, CNG and LPG networks. "In the past five years, gas supplies to domestic consumers have increased from 54.2 percent to 63.2 percent," Gazprom said in a report published on Russia The ultimate aim is to gasify the country in three phases, with LNG being essential to the first phase.

For more detail, download a complimentary copy of "Downstream LNG Marketing & Distribution" White Paper at

On January 27, 2011, Zeus Development will host a conference in Houston to discuss downstream distribution and the opportunities for management teams that wish to compete in downstream LNG markets. More information can be obtained online at

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