IDEAS home Printed from https://ideas.repec.org/p/ecl/harjfk/rwp05-053.html
   My bibliography  Save this paper

Dawning of a New Era: The LNG Story

Author

Listed:
  • Lee, Henry

    (Harvard U)

Abstract

By the end of 2004, there were over sixty proposals for new LNG facilities at both the producing and importing ends of the operation. Since the mid 1990s, the costs of every step in the LNG chain have dropped substantially and today are considerably below those of domestic pipeline gas in Europe, China, and the United States. This paper examines the causes of these cost reductions and examines how the LNG industry is likely to evolve. It also explores the national security implications of the projected volume of natural gas traded in the form of LNG. The paper concludes that the financial risks inherent in the investments to liquefy, ship, and regasify LNG will force companies to continue to rely heavily on contracts, as opposed to relying on spot sales, and will advantage the larger private multinational companies. Security concerns will increase as China and the United States dramatically increase their imports of LNG, but security risks will remain less than those for oil and, as demonstrated by the Japanese experience, are manageable.

Suggested Citation

  • Lee, Henry, 2005. "Dawning of a New Era: The LNG Story," Working Paper Series rwp05-053, Harvard University, John F. Kennedy School of Government.
    • Handle: RePEc:ecl:harjfk:rwp05-053
    as

    Download full text from publisher

    File URL: https://research.hks.harvard.edu/publications/workingpapers/citation.aspx?PubId=3218&type=WPN
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hamed Nikhalat‐Jahromi & Dalila B.M.M. Fontes & Robert A. Cochrane, 2017. "Future liquefied natural gas business structure: a review and comparison of oil and liquefied natural gas sectors," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 6(4), July.
    2. Nikhalat-Jahromi, Hamed & Bell, Michael G.H. & Fontes, Dalila B.M.M. & Cochrane, Robert A. & Angeloudis, Panagiotis, 2016. "Spot sale of uncommitted LNG from Middle East: Japan or the UK?," Energy Policy, Elsevier, vol. 96(C), pages 717-725.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecl:harjfk:rwp05-053. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/ksharus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.