Asia/Pacific News
Strong Growth in Southeast Asia's LNG Demand Predicted
Demand for liquefied natural gas (LNG) will grow rapidly in Southeast Asian markets over the next twelve years, according to research and consulting firm Wood Mackenzie.
Indonesia, Thailand, Malaysia, and Singapore will be strong markets for LNG suppliers, while India may be a smaller market than some have predicted, it said.
The Southeast Asian LNG market will account for a third of Asian demand growth by 2025, with an increase of 45 million tonnes per annum (mtpa), while Indian demand will only grow by 20 mtpa.
"Recent developments in Indonesia and Thailand have helped strengthen the outlook for very strong SE Asian LNG demand growth," said Nicholas Browne, Wood Mackenzie's senior gas market analyst.
Factors affecting the projections include policy decisions limiting the use of coal for power generation in Thailand and reduced estimates of economic growth in India.
More broadly, Wood Mackenzie predicts Asian LNG demand will get a boost from Japan and Taiwan's reduced reliance on nuclear power and the use of more LNG in China's coastal provinces.
Singapore said last fall it will expand the capacity of a LNG regasification terminal on Jurong Island to support increasing demand for the fuel as the economy grows.
