International Association CEDIGAZ's forecasts indicate that Asia-Pacific will drive both global gas demand and LNG trade until 2030. The growing regional dependence on imports raises major issues like supply security, investment and gas competitiveness. After analysing specific challenges and new commercial opportunities for the Asian gas market, CEDIGAZ concludes on the structural changes required to ensure the future expansion of the Asian gas industry.
According to CEDIGAZ, Asia-Pacific will continue to be the fastest-growing regional gas market in the future, accounting for up to 45% of the global demand growth from now to 2030, on the back of strong economic growth and the attendant increase in energy demand. It is now expected to surpass North America to become the largest consumer market.
The most important growth driver is the boom of emerging markets. In most of them, natural gas is making a growing contribution to the energy mix, under the effect of supportive energy policies and fuel switching requirements from oil to gas, especially in the power sector. One particularity of the Asian market is the lack of pipeline exchanges and infrastructures and the growing reliance on LNG imports. Asia will remain the powerhouse behind global LNG demand growth, under the impulsion of China, India and Southeast Asia. But as of today, two-thirds of the total required regional LNG supply in 2030 remains un-contracted. The growing regional gap between supply and demand raises major issues such as security of supply, competitiveness of gas and massive investment requirements in infrastructures. The Asian market will have to adapt effectively to a world where the interactions between different fuels, markets and prices are intensifying. Evolutions of pricing, trading and contractual conditions will also open real opportunities for growth of the Asian gas industry.
