The LNG imports prices of Belgium attained a value of 160.92 USD/Tonnes in 2020
The indicator recorded a historical decline (CAGR) of 17% between 2017 and 2020
LNG imports prices of Belgium declined sharply in 2020
In midstream activities, prospective players need significant capital investments in infrastructure. Pipelines are the most economically and environmentally efficient way to transport oil and gas, but upfront costs for their construction can be massive. For natural gas, pipeline transportation is even more efficient compared to the costly liquefied natural gas (LNG) transportation. Pipeline networks running across a country or through multiple countries can be profitable. Building an international pipeline though requires navigating political waters, and securing permits through international agreements. With regards to shipping and road transportation, entry to the market requires substantial investments in fleet of vessels or trucks.
Downstream activities are also highly capital-intensive. Setting up a refinery requires a substantial amount of capital, typically billions of dollars, due to the size and the technology of these facilities. Refineries require large economies of scale and investment in advanced and highly automated technologies, while they also have high operating costs, typically employing hundreds of people. New refineries are even more capital intensive due to more advanced engineering and equipment required to improve efficiency, and meet higher quality fuel standards and stricter environmental legislation. The location of refineries is also of great importance as it directly affects the transportation cost of crude oil to the refinery and the transportation cost of refined products to the market. Accordingly, proximity to transportation hubs, equipment suppliers, and large buyers such as petrochemical companies is vital. Overall, entry to this part of the market is dependent on the state of capacity in the market with regards to consumption.
In the case of natural gas, downstream activities of natural gas processing plants are simpler and less costly, as dry natural gas from gas wells is usually pure and needs limited processing. Moreover, natural gas is unique as a final product, unlike oil crude oil which can be refined to different types of oil products. In country-markets which are reliant on LNG exports or imports, entry to downstream activities can be realized through LNG liquefaction or regasification terminals, respectively. In fact, these have been growing as LNG imports account for an increasingly large share of gas imports worldwide. Location for natural gas processing plants and LNG terminals is crucial, with proximity to gas wells and pipeline hubs reducing costs.
United States of America
Canada
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United States of America
United States of America
Canada
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Norway
United States of America
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