IEA expects strong increase in Asian LNG imports
By Trend
The import of liquefied natural gas (LNG) by Asia is expected to
reach 350 billion cubic meters in 2021, the International Energy
Agency (IEA) said in its Global Gas Security Review released on
November 24.
This figure is 40 percent more as compared to 2016, according to
the report.
This will slightly increase the Asian share of total LNG trade to
74 percent from 72 percent in 2015, said IEA.
“The projected import increase over the next five years is mainly
supply driven,” said the report. “This means that the new
liquefaction capacity that is coming to the market is largely
unaffected by low prices or weak demand.”
Moreover, the IEA believes that long-term contracts underpin the
bulk of those new supplies, which ensures producers a minimum cash
flow, even in a low demand, low-price environment.
As a result, imports will have to increase to match those
additional volumes, said the report.
Fatih Birol, the executive director of the International Energy
Agency said that the growth in the global gas trade, along with the
diversification of supply sources, is improving the security of
supply.
“But there is still a need to be vigilant on gas security as the
changing nature of the market means that regional demand and supply
shocks may now be felt in more distant places than ever before,” he
added.
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