The Arrival of the Age of LNG Andrei V. Belyi University of Eastern Finland andrey.belyy@uef.fi

Towards diversified gas trading options Gas chain: virtual trade and physical flows Volumes: large pipelines/ LNG, and small pipelines/ LNG Contacts: Bilateral long-term, forward and spot Access to pipelines, capacity markets

Global market trends

Evolution of costs

LNG: towards a new Energy Product Liquefaction to regasification process involving only maritime transport in between Direct LNG demand in maritime and road transport Development of bunkering and decentralised supplies LNG as a proper fuel

Multiple function of LNG supplies

LNG Containers: future way of energy transport? From 20 to 40ft From 52 to 110 days of refrigeration From $ 10 to $5 MBTU of operational costs No need of regasification/pipelines

Containers: Illustrative examples Towards rail and road transport of LNG fuel, Storability is still limited, hence can not be considered To be a normal commodoty (see WTO Secrt interpretation)

Infrastructures, LNG and International Governance Energy Charter Treaty (1994) and Definition of EMP Fixed infrastructures: main scope for transit but some controversies existed Dispute settlement and Concept of Energy Carriage LNG as maritime transport as part of Law of the Sea (1982), not ECT

Interests for Turkmenistan Export small LNG volumes across Caspian Supply LNG to Pakistan via roads New domestic solutions: gas flaring abatment Swaps with Russia and Iran