Aug 10 (Reuters) - The liquefied natural gas (LNG) market is growing rapidly, attracting more players as it evolves into a more competitive, more transparent market that helps connect gas markets across the globe.
The LNG market is set to grow about 50 percent from 2008 to 2013 as projects in various stages of development come online to feed rising demand.
LNG has traditionally been dominated by a few large gas-producing incumbents. However, as production grows, the likes of BP, Shell and BG are being joined by a growing rank of new entrants looking to gain a foothold in the growing market.
Barclays Capital on Tuesday said it plans to trade physical cargoes of LNG, while Geneva-based Mercuria said it has hired two new traders to launch its LNG operations.
LNG is natural gas cooled to liquid for shipping overseas. It is regasified at terminals for transport ashore through pipelines.
NEW LNG TRADING PLAYERS
Barclays Capital: Barcap entered the physical LNG market on Tuesday in a deal with ENI, under which Barcap will be able to supply cargoes to the U.S. Cameron LNG terminal in Louisiana. It will also market gas shipped to the terminal by ENI .
Barclays already markets gas imported to Excelerate Energy's Northeast Gateway terminal in Massachusetts, but Tuesday's deal means it now has an outlet to send its own LNG into.
Mercuria Energy Trading: One of the world's largest independent oil traders, Mercuria said on Tuesday it will start trading LNG. It has hired two former BP LNG traders Dan Masters and Andrew Helm. The Geneva-based company cited the growth of the LNG market as one reason for its entry.
Gunvor International: Since entering the LNG market in January this year, the two-man LNG team at Gunvor in Geneva has purchased 19 cargoes in the Atlantic, including 14 cargoes from Peru LNG for delivery into Europe this winter.
Gunvor has import capacity in two import terminals Europe, including the Montoir terminal in France, and is looking to expand further in Northwest Europe. It is also looking to add one more trader to its office in Singapore.
Citigroup: After buying its first cargo from Trinidad last year, Citi became famous for aggressively bidding for LNG cargoes. In one deal last November, Citi bought a cargo from ConocoPhillips for re-export from the United States, in a clear sign that U.S. demand for imported gas is dwindling. The bank also set up an LNG trading office in Singapore.
Citi has continued to trade LNG despite losing five of its traders to Golar LNG's new trading outfit in May.
Golar LNG: Golar launched a new trading subsidiary in May, hiring four former Citi LNG traders. Golar, already established in LNG shipping, set up the new arm to market and trade LNG cargoes and offer services such as risk management to third parties. It has not yet been visibly active in purchasing cargoes.
JP Morgan: The U.S. bank entered the LNG market in March in a deal signed with U.S. terminal operator Cheniere Energy under which the two parties will jointly look for buying opportunities in the global market.
JP Morgan has import rights for up to 2 billion cubic feet per day of gas at Cheniere's Sabine Pass terminal.
BofA Merrill Lynch: While it is unclear how active Merrill Lynch has been in the LNG market in recent months, sources said that it is on the lookout for import slots in the Isle of Grain terminal in Britain this winter.
Credit Suisse: Zurich-based Credit Suisse said it has interest in trading LNG in the future though there are no signs yet of the plans being put into action.
Goldman Sachs: After buying a string of cargoes a few years ago, there are rumours that Goldman may also be on the lookout for cargoes going forward.
(Editing by Lisa Shumaker) (Edward.mcallister@thomsonreuters.com; +1 646 223 6221; Reuters Messaging:edward.mcallister.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The LNG market is set to grow about 50 percent from 2008 to 2013 as projects in various stages of development come online to feed rising demand.
LNG has traditionally been dominated by a few large gas-producing incumbents. However, as production grows, the likes of BP, Shell and BG are being joined by a growing rank of new entrants looking to gain a foothold in the growing market.
Barclays Capital on Tuesday said it plans to trade physical cargoes of LNG, while Geneva-based Mercuria said it has hired two new traders to launch its LNG operations.
LNG is natural gas cooled to liquid for shipping overseas. It is regasified at terminals for transport ashore through pipelines.
NEW LNG TRADING PLAYERS
Barclays Capital: Barcap entered the physical LNG market on Tuesday in a deal with ENI, under which Barcap will be able to supply cargoes to the U.S. Cameron LNG terminal in Louisiana. It will also market gas shipped to the terminal by ENI .
Barclays already markets gas imported to Excelerate Energy's Northeast Gateway terminal in Massachusetts, but Tuesday's deal means it now has an outlet to send its own LNG into.
Mercuria Energy Trading: One of the world's largest independent oil traders, Mercuria said on Tuesday it will start trading LNG. It has hired two former BP LNG traders Dan Masters and Andrew Helm. The Geneva-based company cited the growth of the LNG market as one reason for its entry.
Gunvor International: Since entering the LNG market in January this year, the two-man LNG team at Gunvor in Geneva has purchased 19 cargoes in the Atlantic, including 14 cargoes from Peru LNG for delivery into Europe this winter.
Gunvor has import capacity in two import terminals Europe, including the Montoir terminal in France, and is looking to expand further in Northwest Europe. It is also looking to add one more trader to its office in Singapore.
Citigroup: After buying its first cargo from Trinidad last year, Citi became famous for aggressively bidding for LNG cargoes. In one deal last November, Citi bought a cargo from ConocoPhillips for re-export from the United States, in a clear sign that U.S. demand for imported gas is dwindling. The bank also set up an LNG trading office in Singapore.
Citi has continued to trade LNG despite losing five of its traders to Golar LNG's new trading outfit in May.
Golar LNG: Golar launched a new trading subsidiary in May, hiring four former Citi LNG traders. Golar, already established in LNG shipping, set up the new arm to market and trade LNG cargoes and offer services such as risk management to third parties. It has not yet been visibly active in purchasing cargoes.
JP Morgan: The U.S. bank entered the LNG market in March in a deal signed with U.S. terminal operator Cheniere Energy under which the two parties will jointly look for buying opportunities in the global market.
JP Morgan has import rights for up to 2 billion cubic feet per day of gas at Cheniere's Sabine Pass terminal.
BofA Merrill Lynch: While it is unclear how active Merrill Lynch has been in the LNG market in recent months, sources said that it is on the lookout for import slots in the Isle of Grain terminal in Britain this winter.
Credit Suisse: Zurich-based Credit Suisse said it has interest in trading LNG in the future though there are no signs yet of the plans being put into action.
Goldman Sachs: After buying a string of cargoes a few years ago, there are rumours that Goldman may also be on the lookout for cargoes going forward.
(Editing by Lisa Shumaker) (Edward.mcallister@thomsonreuters.com; +1 646 223 6221; Reuters Messaging:edward.mcallister.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.