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The paper by Andrei V. Belyi from the University of Eastern Finland explores the evolution of liquefied natural gas (LNG) as a key energy product. It examines the dynamics of gas trading, the role of large and small pipelines, and the complexities of bilateral long-term and spot contracts. The study highlights significant trends in LNG costs, innovative transport methods including rail and road, and the challenges surrounding storage capacity. It also discusses international governance frameworks like the Energy Charter Treaty and the implications for regions such as Turkmenistan and supply options to Pakistan.
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The Arrival of the Age of LNG Andrei V. Belyi University of Eastern Finlandandrey.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
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