IEA expects strong increase in Asian LNG imports
Baku, Azerbaijan, Nov.24
By Leman Zeynalova – 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 Nov.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.