SOURCE: Zeus Development Corporation

Zeus Development Corporation

November 13, 2013 10:40 ET

Smaller, Greenfield LNG Export Applications Grow as Developers Reach for New Markets, Zeus Conference to Examine

HOUSTON, TX--(Marketwired - Nov 13, 2013) -  Recent applications to the U.S. Office of Fossil Energy for export authority from the U.S. Department of Energy have come increasingly from smaller, greenfield project developers who intend to use prefabricated, modular technology to access markets inaccessible to conventional tankers. Projects, such as Venture Global LNG, Advanced Energy Solutions and Magnolia LNG, which have applied for export authority in the past 11 months, propose to liquefy an average 0.5 billion cubic feet per day instead of a bcfd or more at larger projects. Representatives from across the LNG industry will discuss this trend in North American LNG Exports 2013, Dec. 11-12. See www.northamericanlngexports.com.

"Advancements in the fabrication of shop-built storage tanks and intermodal LNG tanks coupled with modular and floating liquefaction technology may open LNG to a much broader market of smaller power producers," noted Zeus Development Corporation LNG trade analyst George Popps. "These developers aim to serve power markets ranging from 100 to 500 megawatts, whereas world-scale suppliers target much larger consumers."

A total of 32 applications have been filed with the Department of Energy to export LNG to free-trade-agreement countries. Until the third quarter of 2012, this was composed primarily of world-scale facilities, the average size of which is 1 billion cubic feet per day (bcf/d). Roughly half aimed to add liquefaction to conventional large-scale import terminals.

The fourth quarter of 2012 however witnessed a shift. Since then, the average-sized application has fallen to roughly 0.5 bcf/d. Furthermore, eleven of the 14 applications are greenfield projects unassociated with existing import terminals.

"This follows a trend we're seeing worldwide as marketers aim to serve smaller volumes of LNG via modular containment systems to a broader group of small consumers," said Popps. "Shop fabricated tanks and skid-mounted process systems are growing in capacity to enable broader market reach to midtier consumers."

Dec. 11 and 12, the North American LNG Exports conference will examine this trend. More information available at www.northamericanlngexports.com.

Contact Information