LONDON, June 26, 2024 /PRNewswire/ — Released today, the IGU’s 15^th annual World LNG Report finds that global LNG trade grew by 2.1% in 2023, surpassing 401 million tonnes (MT). This global market now connects 20 exporting with 51 importing markets, while supply is currently the primary growth- limiting factor. After two years of severe turbulence, the LNG market has a newfound but fragile equilibrium, given lack of spare supply in the near-term.

LNG has become a critical component of the global energy mix, with its role as a flexible, highly efficient, and reliable resource continuing to grow, and as such, decarbonising the LNG value chain is a priority for many stakeholders in the industry. Several proposed projects are undertaking innovative emissions-reducing measures to meet this need by integrating renewable electricity, carbon capture and storage, partnering to develop e-methane, and grow bio-LNG, or liquefied biomethane, which is produced from capturing and upgrading biogas that would have otherwise been emitted from landfills, agricultural waste, or other feedstock.

LNG receiving capacity growth has been shaping market development over the past 24 months, as it reached an impressive 1,029.9 MTPA at the end of February 2024, adding almost 70 MTPA in 2023 and making it the highest year of new additions since 2010. Europe saw the greatest addition of 30 MTPA, followed by Asia’s 26.9 MTPA and Asia Pacific’s 13 MTPA. The Philippines and Vietnam joined the club of LNG importers in 2023 for the first time.

Supply remained constrained, with just 0.8% YOY growth from Indonesia’s 3.8 MTPA addition at Tangguh LNG. However, global liquefaction capacity is likely to grow to over 700 MTPA by 2030, driven by new FIDs and the start-up of projects currently under construction to support growing demand, particularly in the growing Asian markets, where coal to gas switching is important decarbonization and air quality improvement strategy.

LNG exports were dominated by the US, which became the largest producer and exporter (84.53 MT in 2023 vs 75.63 MT in 2022), followed by Australia (79.56 MT), Qatar (78.22 MT), and Russia (31.36). 

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2023 saw spot LNG prices declining to levels palatable for recovery of import growth in Asia, as Platts JKM averaged $13.86/mmBtu during the year, while average annual price volatility has significantly reduced from 2022 levels but remains above pre-crisis. China came back as the largest LNG importer at 71.19 MT, Japan and Korea remained second and third despite annual declines, and India came back to the fourth position, with more demand responding to the lower spot price. Europe also cemented its role as an LNG importing heavyweight, maintaining the second-largest importing region spot at 121.29 MT in 2023. With LNG supplying almost half of Europe’s gas, the competition between Asian and European markets remains as key market dynamic.

Global LNG market continues to rapidly evolve as it responds to growing gas demand in emerging markets, increasing number and diversification of market participants, and the acceleration of technology development and innovation. LNG industry is no longer a game only for big markets or big companies, with portfolio players playing an increasingly more important role. In 2023, about 180 companies were involved in LNG deliveries under term contracts, while about 35% of the transactions were spot-priced.

However, several major uncertainties confront the supply-constrained market, contributing the fragility of its current equilibrium. Key sources of this uncertainty include: the Biden Administration non-FTA LNG project approvals pause, which could delay over 70 MTPA of new capacity; sanctions on Russian LNG, which impact almost 20 MTPA of expected capacity; the possibility that Ukraine may not extend the Russian gas transit deal at the end of 2024; shipyard bottlenecks; the ongoing security risk in the Middle East; as well as some declining gas field supply. Over 120 MTPA of currently operational liquefaction capacity is over 20 years old, and some of these facilities are being mothballed due to insufficient upstream gas production, which calls for attention to the supply side risk.

IGU President, Li Yalan stressed:

The LNG industry has demonstrated incredible agility and innovation through some of the toughest tests over the recent years, and this is an industry that continues to play a pivotal role to navigate through an energy crisis that has not yet been fully resolved and an energy transition that has been challenged.

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As the world moves toward a low emissions future, nations are seeking ways to achieve their climate commitments while keeping energy affordable, available, and secure. LNG is a tool that will be critical to providing greater resiliency for rapidly changing energy systems around the world, and it will have an essential role mitigating the inherent risk of uncertainty through that process.

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About the Report

Leveraging the IGU’s vast global gas value chain network across 80 countries, the report provides the most authoritative public data and analysis on LNG trade, price, liquefaction, regasification, shipping, bunkering, as well as key developments impacting the global LNG market. 

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ISTANBUL, June 26, 2024 /PRNewswire/ — VeriPark and FICO have launched a partnership to revolutionize the financial services sector through AI-driven decision making and digital transformation.

The collaboration between VeriPark, a global provider of innovative digital solutions, and FICO, a renowned analytics software company, will enhance decision-making and promote financial inclusion across Turkey, the Middle East, Africa, Asia and CIS regions.

Combining FICO’s decision automation, optimization and omnichannel communications capabilities with VeriPark’s customer engagement, omni-channel delivery, branch automation and loan origination solutions, the partnership aims to improve customer experience and accelerate digital transformation.

“We are excited to bring FICO’s cutting-edge technology to our region. This collaboration will enhance customer experiences and operational efficiency across the financial services sector. Integrating FICO’s technology with our solutions represents a significant leap forward, ensuring we stay ahead in a rapidly changing environment. We look forward to showcasing our joint success stories soon,” said Ozkan Erener, CEO of VeriPark.

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“The combination of FICO and VeriPark’s strengths brings a unique blend of innovation to the market. Our goal is to help build a better society by bringing more people into the banking system, and our partnership with VeriPark is a critical step towards achieving that. FICO has been working with AI since 1992, and we are eager to introduce this long-standing expertise to businesses in this region through our collaboration with VeriPark.” said Alexandre Graff, Vice President of Global Partners & Alliances, FICO.

About VeriPark (https://www.veripark.com)
VeriPark is a global solutions provider enabling financial institutions to become digital leaders with its Intelligent Customer Experience suite. With offices located in United Kingdom, Europe, the United States & Canada, Asia, Africa and the Middle East, VeriPark is helping businesses to enhance their customer acquisition, retention and cross-sell capabilities by providing proven, secure and scalable Customer Relationship Management, Omni-Channel Delivery, Branch Automation, and Loan Origination solutions.

About FICO (https://www.fico.com/)
FICO powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail and many other industries.

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CUBE, a leader in Automated Regulatory Intelligence (ARI) and Regulatory Change Management (RCM), has released a report detailing significant compliance challenges faced by global financial services firms today. The report serves as a strategic resource for compliance departments, incorporating insights from esteemed compliance professionals and regulatory experts within the industry.

Dr. Yin Lü, CUBE’s Global Head of Product for Artificial Intelligence, describes the recent environment in financial services as tumultuous, driven by rapid technological advancements, stringent regulatory scrutiny, and intense consumer demand for new products and services, all within a compressed timeline.

The report categorizes the primary compliance issues into five key areas: the rapid pace of regulatory changes, proactive risk management, the complexities of Environmental, Social, and Governance (ESG) criteria, data privacy concerns, and the challenges of operating within tighter budgets and rising costs.

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One significant point of concern is the expanding scope of regulations, exemplified by the constant updates to the UK’s payment frameworks post-Brexit and the U.S. regulatory bodies’ efforts to regulate cryptocurrencies, digital wallet services, and shadow banking. Since the 2008 financial crisis, CUBE’s regulatory inventory has tracked over 40 million regulatory documents affecting the banking sector, highlighting the complex landscape compliance professionals must navigate.

Dr. Lü emphasizes the importance of staying ahead of risks to mitigate increasing penalties for non-compliance. She notes that recent enforcement actions have focused on lapses in recordkeeping, cryptocurrency fraud, and weaknesses in corporate governance, with fines related to unmonitored phone usage topping $2 billion since 2022.

The report also discusses the growing ESG divide, noting the difficulty compliance officers face due to conflicting demands and evolving standards across various jurisdictions. With over 600 active ESG standards and frameworks, achieving compliance is increasingly challenging.

Data privacy remains a critical concern, with privacy laws expanding significantly since 2023 under heightened regulatory demands to protect consumer data. AI and machine learning are invaluable in helping compliance teams manage complex international frameworks through horizon scanning and data mapping.

Furthermore, Dr. Lü highlights the pressure on compliance functions to do more with less, suggesting that integrating AI into compliance processes is crucial for managing costs and enhancing efficiency. She advocates for transitioning to machine-driven and human-validated compliance workflows to maintain alignment with the latest regulations and reimagines the potential of compliance teams to enhance financial stability and protect businesses and consumers alike.

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Source: ibsintelligence.com

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