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Prize for LNG sellers ‘significant’ as demand in Asia grows: WoodMac

A man walks past the Shahamah liquefied natural gas (LNG) tanker sitting berthed at Tokyo Electric Power Co.’s (Tepco) Futtsu gas-fired thermal power plant in Futtsu Chiba Prefecture, Japan, on Thursday, Jan. 21, 2016.

Tomohiro Ohsumi | Bloomberg | Getty Images

The buyers’ market in liquefied natural gas may continue over the coming years due to oversupply, but sellers could stand to gain as demand in Asia grows, according to an energy research company.

Global demand is not expected to outpace supply until the mid-2020s, but even that respite may be short lived once new supply from projects in Qatar and the U.S. come online, said Valery Chow, head of Asia-Pacific gas and LNG research at Wood Mackenzie.

“Despite these developments, the prize for suppliers remains significant given the potential growth of future demand in Asia,” he told CNBC in an email..

LNG demand in Asia is growing “significantly faster” than in the rest of the world because of the region’s economic and population growth, he said.

Asia will account for an incredible 95% of global LNG demand growth between 2020 and 2022.

Gavin Thompson

Wood Mackenzie, Asia-Pacific energy vice chairman

Growing demand

Who are the sellers?

Read More: Prize for LNG sellers ‘significant’ as demand in Asia grows: WoodMac

2021-05-19 20:54:00

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