The LNG world market is ever growing and has experienced radical changes over the past few years with the emergence of new LNG exporters. These changes are associated with an unequivocal increase in the complexity and dynamics of LNG trade movement in the world. This has shifted the bottleneck of governmental policies towards energy security and secure supplies, with the unsubstantial need to project LNG imports and exports as key to trade strategies.
HJM’s MAGNET model is a coarse-grained simplified model, based on a steady state optimized LNG trade equilibrium, providing a valuable tool to assess the stability of LNG trading from both the importer and the exporter stand-point. Not only the model is used to predict which countries have established a secure supply, but it also provides a useful platform to highlights alternative redistribution of supplies quantity and sources to maximize energy security for existing and emerging countries. Given that the model describes a steady-state optimized market, the astronomical variables synthesized in energy security matrices have been reduced to four main criteria. With a user-friendly algorithm, it allows the client to understand the output of the model, and fine tune it to its own ease. It is argued that at the steady-state representation, other considerations affecting supply security are implicitly included in the model variables.
In short, MAGNET helps oil and gas clients to: