British Chamber of Commerce celebrates 50 years of LNG

One of the key highlights of the evening was ringing of a vessel bell that belonged to Methane Progress – the sister ship of Methane Princess. The ringing of a ships bell signifies the change of the watch. The Bell was rung to commemorate the end of 50 long and successful years and to welcome the next 50.

Singapore 24 September 2014:
 
50 years ago, the Methane Princess made its maiden journey to deliver the world’s first commercial shipment of Liquefied Natural Gas. Operated by Shell Tankers U.K. for British Methane (50/50 British Gas Council/Conch) it lifted the cargo from the CAMEL LNG plant at Arzew in Algeria and delivered it to the world’s first  LNG receiving terminal at Canvey Island in U.K. This historic journey marked the point at which the commercial LNG industry was born changing the global energy landscape significantly whilst creating millions of jobs across the world and boosting the global economy. 
 
Celebrating this key milestone the British Chamber of Commerce in Singapore organised a special evening celebration yesterday with the key players of the LNG industry at Eden Hall, British High Commissioner’s residence. 
 
Some of the key people amongst many others who attended the event were: 
Judtih Slater – Deputy High Commissioner and Director of UK Trade & Investment
Jerome Ferrier – President of International Gas Union
Steve Hill - President Global Energy Marketing and Shipping, BG Group
Roger Bounds – Global Head of LNG, Shell
 
One of the key highlights of the evening was ringing of a vessel bell that belonged to Methane Progress – the sister ship of Methane Princess. The ringing of a ships bell signifies the change of the watch. The Bell was rung to commemorate the end of 50 long and successful years and to welcome the next 50. 
 
British High Commissioner Antony Phillipson shared in his message that “The UK’s industrial strategy for Oil and Gas reflects the Government’s commitment to working with the industry to create the right conditions to maximise opportunity and attract investment to the benefit of the whole UK economy.
 
I am delighted that we are celebrating the last half century of this crucial industry’s evolution in partnership with the British Chamber of Commerce, Singapore. Here, too, there is a focus on creating a forward looking dynamic LNG sector, with UK companies playing a key role. It is only appropriate that we commemorate the key milestones of the past together whilst looking forward to further successes in the future.”
 
Commenting on the celebration, Chamber President Hugo Walkinshaw shared in his message: “Over the years, the Chamber has continuously adapted to the changing business landscape both locally and internationally. Ten years ago, members from the Energy & Utilities sector highlighted the need for more active engagement within the membership network and beyond, which resulted in the formation of our first Business Group. Today, we have twelve Business Groups which have become important pillars in the Chamber's ability to deliver its mission – Building Networks, Connecting Businesses and Creating Opportunities.
 
The Chamber is delighted to celebrate the 50th anniversary of the first LNG shipment – a key milestone in the history of the E&U sector. I would like to thank HE Antony Phillipson for hosting us at his residence, our sponsors Shell, BG Group and ExxonMobil for their contribution and the continuous support of the E&U Business Group in making this event an incredible success.”
 
Roger Bounds, Global Head of Shell LNG, said, “We stood at the cradle of the LNG industry and have been deeply involved in its development for the last five decades. Shell continues to contribute through commercial and technical innovation with our partners and customers to create value for the industry.”  
 
 

Looking Ahead – LNG Industry Overview

 
Demand for LNG had been expected to double between 2010 and 2020 but after three years of flat growth (2012-2014) it now looks unlikely that it will. However it could be close, which means that despite all the new capacity coming on between now and 2018, there is a need for several more projects to be sanctioned in the next couple of years to bring on a further 35 million tonnes by 2020.
 
Growth over the next 5 years is going to be mainly in China and India with uncertainty about Japan. China will overtake Korea as the second largest LNG importer with imports of about 50 mtpa by 2018.
 
We are also on the cusp of the development of a major new market for LNG – the transportation sector. There is growing awareness of the economic and environmental drivers favouring the adoption of LNG as a transportation fuel with it looking as if in many countries truck, train and heavy plant operators may be able to reduce fuel bills by about 30% by using LNG rather than diesel. First movers were in the US and Canada, but the largest and fastest growing market is in China. 
 
There is a focus on offering LNG as marine fuel in Europe and North America ahead of a significant reduction in permitted fuel sulphur levels in 2015, but in China the focus is on the truck market, in Indonesia the focus is on remote power and mining plants and in Australia to mines and road train operators. LNG is a very attractive diesel replacement in many countries and potentially this market could be as large, and possibly larger, than the traditional power, city gas and industrial markets.
 
The “Golden Age of Gas” is leading to the “Golden Age of LNG”. LNG exports now account for 10% of world gas consumption and this share will grow over the next few year. LNG is no longer a niche business with producers, mainly in Asia and the Middle East focusing on the market in NE Asia but is rapidly becoming global. LNG liquefaction is no longer the preserve of major NOC’s and multinational oil companies with new independent players entering the market. 
 
Instead of LNG having to be delivered into large import terminals before distribution to multiple end users it can now be delivered to individual plants and customers. Nearly every country that does not currently import LNG seems to have plans to build LNG receiving terminals. On 7 August the Ministry of Energy in Myanmar gave eight companies permission to import LNG and the first small parcel of 1,780 tonnes arrived on the 23rd August marking Myanmar’s entry as an LNG importer. Vietnam and the Philippines hope to follow shortly and, from there being no LNG importers in South East Asia in 2010, we could find that all South East Asia countries, with possible exception of Cambodia and Laos, will be importing LNG by 2020. The future looks bright for LNG and we have come a very long way since the first commercial shipment in October 1964.
 
Source: Tony Regan, Tri-Zen International; BritCham LNG 50 booklet.
 
 
 

Importance of LNG to Singapore

 
About 90% of Singapore’s electricity is generated using imported natural gas. Before the LNG Terminal came into being, Singapore’s only option was to import natural gas via pipelines from Malaysia and Indonesia.
 
The LNG Terminal is therefore critical to Singapore’s energy security, as it allows the country to import natural gas from just about anywhere in the world. LNG is currently the most practical option for Singapore in terms of balancing between security of supply, cost effectiveness and environmental friendliness
 
LNG has the potential to become a major economic driver for Singapore. Leveraging on its strategic geographic location and excellent economic infrastructure, Singapore can become a major player by facilitating global LNG flow and establishing itself as a LNG Trading Hub for the region.
 
Singapore has two separate gas pipeline networks namely: Town Gas and Natural Gas Town gas, which is used for cooking and water heating by residential and commercial customers, is manufactured from natural gas. The town gas pipeline network serves about 50% of the households in Singapore.
 
Source: http://www.slng.com.sg/
 
 
 
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Note to Editors:
 
About the British Chamber of Commerce in Singapore 
 
The British Chamber of Commerce is one of the largest foreign business networks in Singapore with a long and proud history celebrating its 60th Anniversary this year. The Chamber plays a pivotal role in raising the profile of British companies, establishing robust connections with the Singapore business community as well as facilitating business opportunities for companies in Singapore and the UK. 
 
BCCS recently became a member of the UK business network, created by the British Chambers of Commerce and UK Trade & Investment, providing practical support for UK exporters.
 
With more than 400 corporate members, represented through currently 2,600 employees, the Chamber offers various platforms for businesses and leaders to connect, drive and develop business, learn and exchange insights. We are committed to delivering: 
 
Building Networks - Provide a diverse and inclusive network to build opportunities for British, international and local organisations in Singapore with ties to British business.
 
Connecting Businesses - Encourage British trade and investment in Singapore and the Asia Pacific region and to be the authoritative voice of British business.
 
Creating Opportunities - Provide our member companies, and executives throughout their organisations, with practical support and advice, delivered via a range of scheduled events, on-line communities and to share knowledge and expertise.
 
 
Media Contact 
Vipanchi, British Chamber of Commerce Singapore
+65 6222 3552 / vipanchi@britcham.org.sg 
 
 
 
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