Azerbaijan, Baku, Jan. 17 / Trend A. Badalova /
Pipeline supplies can see more competition from LNG deliveries in the future, Editor-in-Chief at Eurasia Energy Observer, Andrej Tibold believes.
According to Tibold, currently there is certainly strong LNG dynamics in Europe.
"The expectation is that in the second half of this decade we will see more LNG arrive in Europe coming from new producers. This will create more competition with pipeline supplies," Tibold wrote Trend via e-mail.
However, the expert believes that LNG supplies are not just limited to Europe.
Tibold believes that the growth dynamics of LNG supplies offers new opportunities, such as access to the global market.
"The advantage of exporting gas as LNG is receiving access to the world market," Tibold said.
According to BP, LNG trade will gain a larger role in the long-term perspective.
"LNG production will grow by 4.3 percent per annum, accounting for 15.5 percent of global gas consumption by 2030," BP Energy Outlook 2030 says.
According to BP, Africa will become the largest net LNG exporter in 2028.
According to the U.S. bank JP Morgan analysts, global LNG growth averaged approximately 15 percent in 2011.
According to the analysts' bull case scenario, LNG demand in Europe will grow from 68 million tons per annum in 2013 to 72 million tons in 2014, 78 million tons in 2015, 86 million tons in 2016, 94 million tons in 2017 and 99 million tons per annum in 2018.
Currently Azerbaijan is involved in the project called AGRI, which envisages transporting Azerbaijani gas via pipelines to the Black Sea coast of Georgia, where the gas will be liquefied at a special terminal. The gas will then be delivered to a terminal at the Romanian port of Constanta via tankers. Later the liquefied gas will be brought into the state of natural gas and directed towards covering the needs of Romania and other European countries.
The participants in the AGRI project are the State Oil Company of Azerbaijan (SOCAR), the Georgian Oil and Gas Corporation, as well as the MVM Company (Hungary) and Romgaz (Romania).