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Strategic Analysis of EPC Opportunities in the Asia-Pacific LNG Market

NEW YORK, Feb. 24, 2014 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:

Strategic Analysis of EPC Opportunities in the Asia-Pacific LNG Market
http://www.reportlinker.com/p02027622/Strategic-Analysis-of-EPC-Opportunities-in-the-Asia-Pacific-LNG-Market.html#utm_source=prnewswire&utm_medium=pr&utm_campaign=Oil_and_Gas_energy

Southeast Asia and Australia Supply Most of the LNG to Japan and South Korea

Executive Summary

- The total Asia-Pacific (APAC) Engineering, Procurement and Construction (EPC) Opportunities in the liquefied natural gas (LNG) market generated a revenue of $xxmillion in 2012. It is expected to increase to $xx million in 2017, at a compound annual growth rate (CAGR) of xx% between 2012 and 2017.
- The Southeast Asia market was the largest revenue contributor in the year 2012 and recorded a revenue of $xx million. This was followed by Australia, with $xx million and the East Asia region, with $xx million.
- Onshore sighting of LNG production facilities in places, such as Australia and Malaysia, can often require long and expensive pipelines to bring the fuel to the refrigeration equipment. This has triggered renewed interest in offshore LNG production.
- Floating LNG (FLNG) production vessels are being introduced to make smaller and more remote offshore natural gas assets commercially viable. These plants typically have capacities of around one million to five million tons per annum (TPA).
- Japan and South Korea are the largest consumers and contribute close to xx% of the global demand for LNG. Although the governments of Japan and South Korea are encouraging competition between LNG suppliers to reduce prices, the uncertainty over nuclear power generation and lack of clarity with respect to the development of projects are expected to result in high cost of LNG production and development.

CEO's Perspective

The earthquake in Japan, in 2011, created an uptake for the LNG industry in Asia-Pacific.
China's import of natural gas is expected to drive the demand for LNG production in other APAC countries.
FLNG production vessels are likely to improve the commercial viability of remote offshore natural gas assets.
Australia is expected to emerge as a major participant in the market, with the addition of new liquefaction plants during 2013–2018.
A boom in the production of unconventional gas in the United States may impact LNG exports from the APAC market.

Definitions

Research Objectives
This research service covers EPC opportunities analysis of the LNG industry in Asia-Pacific. The opportunity assessments are further broken down into potential prospect for turbo-machinery and electrical equipment.

Research Period
The study period covered in this research service is from 2010 to 2017, with 2012 as the base year. The historical period is from 2010 to 2011 and forecast period is from 2013 to 2017. The market information for the historical period and base year has been obtained from both primary and secondary research data and analysis. Key trends and information on the market size, market share and other variables are based on discussions with key industry stakeholders. Market forecasts are performed based on Frost & Sullivan's proprietary forecast model that take the impact of market drivers and restraints and industry challenges into account.

Geographical Definition
The Asia-Pacific market data in this research service covers the following geographical regions and countries:
- East Asia: Japan, South Korea and Taiwan
- Southeast Asia: Brunei, Indonesia, Malaysia, The Philippines, Singapore, Thailand and Vietnam
- Australia Liquid Natural Gas: Cooling natural gas to about -xx°F at normal pressure results in the condensation of the gas into liquid form, known as Liquefied Natural Gas (LNG).
Exploration and Production: The upstream oil and gas industry is usually associated with the exploration and production. This includes the search for potential crude oil or natural gas, drilling and operating wells and recovery of the crude oil or natural gas to the surface.
Liquefaction: The process of liquefaction involves the cooling of natural gas to -xxºC and reducing its volume by a factor of xx. This process of reduction helps in easy transportation of natural gas from one location to another using LNG tankers.
Regasification: This process consists of converting the liquefied gas into gaseous state to be fed into the transmission and distribution grids.
Engineering, Procurement and Construction (EPC): A contract which delivers engineering, procurement and construction services for the construction of a plant on a specified contract value within a stipulated time to the project owner or project developer.
Turbomachinery: Turbomachinery are mainly used in LNG plants as compressor drives for refrigeration or power generation. It covers steam turbines, aeroderivatives and industrial gas turbines.
Electrical Equipment: Electrical equipment for LNG plant includes transformers, switchgears, low-voltage (LV) and medium-voltage (MV) power systems, switchboards, backup generator sets and other related equipment.
Non-electrical Equipment: Non-electrical equipment covers civil structure, mechanical equipment and other equipment that is not covered under the turbomachinery and electrical equipment categories.

Exploration and Production

This process involves the extraction of raw natural gas from the earth's surface. Once a potential natural gas field is identified by geologists, a team of specialists proceed to drill a well, to verify the commercial viability of extracting the natural gas. Upon commercially-viable extraction from the ground, the raw natural gas is called feed gas. This feed gas has to be processed and purified so that it contains almost entirely methane for consumption in households and factories. The processed natural gas can either be transported through pipelines for local consumption or through other modes of transportation (by sea or truck) for export purposes.

Liquefaction

Liquefaction involves the processes of cooling and condensing of natural gas. The natural gas is liquefied through refrigeration technology, which brings its temperature down to approximately -xx°C (-xx°F). LNG is a non-corrosive and colorless liquid like water. In liquid form, LNG occupies a volume that isxx times smaller than in its gaseous form. Owing to this reduced volume, it is economically feasible to transport large quantities of LNG by ship or truck. However, to remain in liquid form, the storage tank has to be thermally insulated to prevent the LNG from evaporating during transportation.

Transportation

Once natural gas is liquefied and ready for export, LNG is mainly transported via sea route. Specifically designed ships, with advanced systems for handling cryogenic cargo, are used as the carriers for LNG. The containment tanks on the ship have a few layers of insulation to keep the LNG at cryogenic temperature. The containment tanks are usually shielded by double hulls to prevent leakage, in the event of grounding or collision.
Despite the presence of such insulation systems that limit the evaporation of LNG during voyages, some amount of LNG still boils off. The boil-off gas is used as a supplementary fuel in some vessels.

Regasification

After the LNG is transported, it has to be unloaded into on-shore import terminals before undergoing regasification, which converts the LNG back into natural gas. Some ships are also constructed as Floating Storage and Regasification Units (FSRUs), which can be used to deliver LNG to offshore terminals. Upon unloading, the LNG is transferred through cryogenic pipelines to insulated storage tanks specifically constructed to hold LNG. Then, the LNG is sent to vapourisers, to heat up and regasify the LNG.
Before the natural gas is distributed to consumers, an unpleasant smelling odour is added to the natural gas. In the absence of this odour, as natural gas is colourless and odourless, it will be impossible to detect a leak without instruments.

Key Questions This Study Will Answer

Can the LNG value chain sustain the present high demand?
Will the LNG industry be able to sanction projects at a rate that is necessary to keep pace with growth in demand for LNG?
Where will the new wave of projects come from?
Will floating liquefaction technology unlock unexplored reserves of stranded gas?
What are the market opportunities for EPC?
Executive Summary
Market Overview
Total EPC Opportunities in the LNG Market
External Challenges: Drivers and Restraints
Forecasts and Trends
Competitive Analysis
East Asia Breakdown
Southeast Asia Breakdown
Australia Breakdown
The Last Word (Conclusions and Implications)
Appendix

To order this report: Strategic Analysis of EPC Opportunities in the Asia-Pacific LNG Market
http://www.reportlinker.com/p02027622/Strategic-Analysis-of-EPC-Opportunities-in-the-Asia-Pacific-LNG-Market.html#utm_source=prnewswire&utm_medium=pr&utm_campaign=Oil_and_Gas_energy

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