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LNGOneWorld- Combining Contemporary technologywith a Conservative Business sense
The LNG industry is a sunrise industry with a bright future, but involving a complex interplay of various variables, that makes uncertainty a constant companion for decision makers. However, high stakes inherent to the industry critically require the best interpretation of the complex scenario that would ultimately distinguish the 'winners' from the 'losers'. The need thus arises of up to date, accurate and reliable business intelligence information from providers who are experts and leaders in the field.
Also, the rapid growth in LNG sourcing options, 'fragmentation', and growth of speculative (not committed to any particular project) LNG shipping tonnage ordering offers increased flexibility such as spot or short term LNG trading for various players.
LNGOneWorld is a well thought out pioneering venture aimed at providing LNG trade and transport related business intelligence information as well as trading opportunities for the LNG spot trade. More than just merely leveraging web-based technologies, the most important strength of the portal is that it is promoted and supported by entities that are both respectively one of the largest global trading entities and leading providers of research and consultancy services to the LNG transportation industry.
What business intelligence information would be provided by LNGOneWorld?
The LNGOneWorld portal is essentially a business-to-business portal. The information provided is specialised in nature for professionals involved in the LNG trade. These include entities involved in both upstream and downstream aspects of the LNG chain - oil majors, LNG upstream infrastructure /equipment providers, governments of LNG exporting/importing countries, companies involved in developing infrastructure and equipments for liquefaction/re-gasification terminals, LNG shipping companies, shipyards, LNG traders and power sector utility companies. The portal is also a boon for legal entities, financial institutions and various kinds of intermediaries who are essential to support the LNG business.
LNGOneWorld provides a single content-rich information source; covering the global LNG markets in terms of production, consumption, pricing, infrastructure, trade and shipping. It combines daily industrial news with topical editorial features, as well as supplying the latest data on energy, trade and shipping. There is also a unique discussion forum, where LNG professionals can share and debate the latest developments within the industry, and a member's directory where personal and company details can be logged.
The focused coverage is comprehensive and selective yet at the same time provides clarity and only the necessary detail for speed, accuracy and exclusivity, handing decision makers valuable lead time to benefit and profit by. In summary, LNGOneWorld would allow company internal resources to focus on strategy, interpretation and analysis, rather than data mining.
What is LNG trading?
For more than twenty years LNG projects were funded by long-term, inflexible contracts due to the major investment needed. These are described as traditional LNG contracts. However, today's intense international competition in the LNG supply domain and demand fluctuations due to deregulation and the liberalization of the energy sector, coupled with a growing LNG fleet and more trading opportunities, means that the traditional structure of the LNG industry is gradually being broken down to be replaced by more flexible arrangements. A new concept or type of contract is being called for by the market- the so called non-traditional LNG contract, with more spot and short term contracts, encouraging speculative ventures and new entrants into the market.
The first milestone in LNG trading-LNG swaps
LNG users should be able to vary the supply of LNG to match their variable energy demand by swapping almost full shipload of LNG with other user (s) who have an almost equal but opposite demand requirement. To facilitate swap arrangement efficiently and quickly, the LNG trade will have to exchange information about their supply / demand requirements on a timely and regular basis with each other.
LNGOneWorld believes that increase in user to user 'cargo swaps' would be the first actionable step in the direction towards a liquid market for the spot trading of LNG. The portal, thus seeks to be the medium through which the LNG trade can regularly and on timely basis exchange information and facilitate an efficient swap market and eventually a liquid spot market for LNG.
Contemporary technology with a Conservative Business sense
In some cases, where the inherent business model of electronic trading platforms have been sound, they were backed by companies trying to register unsustainable skyrocketing growths. An example here is that of the unfortunate fall of Enron- even though the Enrononline business model with a conservative backing has still many possibilities.
LNGOneWorld has an advantage in being promoted and developed by entities that have an in depth and practical understanding of the nuances of both the conservative energy trading domain as well as shipping markets. LNGOneWorld's strategy seems to be to iteratively gain sustainable user confidence and foster a community building exercise as the market readies for spot LNG trading.
Promoters and Participants of LNGOneWorld
LNGOneWorld has been created by LNG Japan Corporation and North South International Ltd. LNG Japan Corporation was established in September 2001 as a joint venture between Nissho Iwai Corporation and Sumitomo Corporation. The core mission of the venture is to focus on, and expand its LNG related activities and hence become one of Japan's leading energy companies. North South International Limited is a London and Oslo based corporate finance and strategy advisor specialising in the shipping industry. Day to day content of the site will be managed by London based Drewry Shipping Consultants, a company with three decades of experience of covering the international LNG markets.
Time frame for the development of the portal
The first phase of the LNGOneWorld portal, providing critical business intelligence information to the LNG industry players is already functional and located at http://www.lngoneworld.com. The second stage envisaging an electronic trading platform for LNG is proposed to be developed by the year 2004.
Membership Structure
The portal has a four-level membership structure as follows:
1) Non-registered: Available to all interested parties
2) Level One [Complimentary]: Available to registered individuals
3) Level Two [Associate Membership]: Available to companies with an interest in the LNG industry
4) Level Three [Full Membership]: Available to core LNG participants such as consumers, producers, importers, exporters, shippers and traders, etc.
Each membership retains different levels of access to the site contents and membership is strictly controlled by LNGOneWorld in order to maintain the highest standards for core LNG industry players.
