Assessment of interactions between economic factors and freight market in the LNG sector
KeywordsLiquified Natural Gas (LNG) ; Freight markets ; Economic factors ; Prices ; Emerging markets
In this dynamic era, world economy is never constant and the key role of energy source is played by natural gas. The share of natural gas is increasing day by day and being traded in form of LNG. Although the LNG is not as globalized compared to some of the other energy resources; however, it has surfaced as a rapidly growing market throughout the world. In the coming years, the demand for LNG is expected to grow at a high speed. This study deals with the recognition of the factors that are likely to trigger and constrain the LNG market keeping in mind the rapid expansion in the LNG trade. The analysis focuses on the freight market in the LNG sector. The study also deals with the economic factors that have been affecting the LNG freight market. The study reflects that the drastic fall in LNG prices is caused by the sudden changes in the demand and supply as well as the shift in the economic factors that affected the freight market of LNG. Moreover, the emerging nations such as Colombia, Indonesia, India, Kenya, Malaysia, Mexico and Poland have played and will play a vital role in influencing the demand and supply of the LNG by playing a crucial role of either an importer or exporter. It is also being reported that after the oil war the next big controversy is expected in the LNG sector where gas exporting countries will compete against each other to win LNG exports.