International trade in natural gas dates back to the middle of the 20th century, and the globalization of the gas market began in the 1960s. Large-scale investments were initiated then, involving two parallel distribution channels: export and import gas pipelines, and LNG terminals. The discovery of new sources of natural gas, often in regions far away from the main routes of natural gas supply via pipelines, plus the development of sea transport of LNG, led to dynamic development of the market.
In the initial period, the market was largely based on regional connections. But over time, the development of international relations has led to the emergence of a global LNG market based on more and more uniform mechanisms of functioning.
The process is undergoing constant evolution towards ensuring greater efficiency of the global market.
Liquefied gas is bound to play a significant role in ensuring the energy security of the EU and gradually improving competition on the increasingly integrated energy market. Further expansion of energy infrastructure is essential, as it will improve the chain of supply and distribution of liquefied gas and give EU member states direct or indirect access to the global energy market.
This is an excerpt from a free e-book published by the Ignacy Lukasiewicz Energy Policy Institute on May 31, 2017.
Global LNG Market