There are 35 active LNG (liquid natural gas) production projects with a combined capital investment value of more than $50 billion scheduled to begin production in the next five years, according to a study by www.industrialinfo.com. The study says large capital investments in LNG production will continue to escalate through 2025, driven particularly by high demand in the western part of the world. The fluid handling industry figures to benefit significantly from this boom, as LNG production, processing, and transport processes all require complex handling systems.
The strongest LNG growth is expected to come from the Iran, Qatar, Australia, Angola, Equatorial Guinea, Nigeria, and Russia. These countries will strive to meet increase in natural gas demand from nations such as Japan, Korea, Spain, and the United States. Nations like Russia, Qatar, Algeria, Nigeria, and Angola tend to favor foreign investments, technology development, and offer more political stability compared to the Middle East. The new high-tech production of LNG offers low production cost, making it an affordable fuel to developing nations, and the ideal alternative fuel to the growing economies of the world. Economic benefits reaped from the development of LNG production trains extend to other auxiliary facilities and related services such as engineering, technology development, ports, storage terminals, and plants.
Of the 35 active LNG projects to be developed in these countries, most of the money will be spent to expand existing operations and develop grassroot projects within the next five years. Most projects are developed by a consortium involving major players in the field, such as BG Group PLC, which is investing $2 billion to develop the Indoc South Par LNG production facility in Iran, BP, which is spending $2.1 billion on Tangguh LNG production in Indonesia, ChevronTexaco, which is spending $2.2 billion on the Barrow Island LNG project in Australia, and $2.1 billion on the Luanda LNG project in Angola, ConocoPhillips is spending $3 billon on the Brass LNG project in Nigeria, and Gazprom is spending 1.5 Billion on the Baltic LNG Project in Russia.
For a breakdown of projected LNG spending by country, visit www.industrialinfo.com/media/downloadMedia.jsp?mediaId=124961.
— Flow Control Staff