LNG – tomorrow's market

Natural gas liquefaction is a business area with huge potential. Liquefied natural gas (LNG) is produced by cooling natural gas down to between         -161°C and -164°C. In its liquid state, natural gas takes up only 1/600 of its volume when it is in a gaseous state. This is a great advantage when it comes to natural gas transportation and storage, as LNG can be carried by ship.

In 2008, the entire LNG business was transferred to Gazprom Global LNG (GGLNG), an independently operating subsidiary of GM&T that focuses on global LNG trading and its development. By focusing on LNG, the GAZPROM Germania group is following an increasing global trend.

2010 also saw LNG gain importance due to significant price differences in comparison to long-term contracts for pipeline gas. New liquefaction capacities in the Middle East and regasification capacities in Europe have further strengthened LNG’s position and led to its historically low price on Western European trading hubs.

This year, LNG sales rose to 2,512 Mm³, up 33.1 % on the 1,887 Mm³ sold in 2009, with above-average profit growth in LNG sales to Japan, Korea, China, and Taiwan. 2010 also saw Gazprom Marketing & Trading Singapore PTE Ltd commence oil and biomass trading.