Asia-Pacific LNG demand to rise to 245 mil mt by 2025: Western Australia Premier – Platts
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Western Australia’s Department of State Development estimates that LNG demand in the Asia-Pacific will increase from around 180 million mt in 2014 to 225 million mt in 2020, and to 245 million mt in 2025, Western Australia Premier Colin Barnett said Tuesday.
“Over the past decade, demand for LNG in Asia-Pacific has more than doubled,” Barnett said during the LNG 18 Conference held in Perth, Western Australia, over April 11-15. “The industry may be cyclical and sometimes volatile, but the long-term growth trend is undeniable.”
The Asia-Pacific already consumes three-quarters of global LNG exports. Yet, within this market, gas accounts for only around 10% of electricity generation, 5% in China, and less than 5% in India.
“The prospects for future growth through economic development and the policy decisions of governments are obvious,” said Barnett.
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Australia’s LNG production capacity will increase fourfold over this decade to around 85 million mt, likely taking the country to the status of the world’s leading producer.
A share of that production is likely to be delivered to the European markets because of the economic risks of Europe’s heavy reliance on pipeline supply from Russia and central Asia.
“Those pipelines have been turned on and off a few times, so security of supply could mean more [Australian LNG] cargoes to Europe.”
Australia’s gas reserves are not large in comparison to world reserves, making up only 2% of the total, but they are relatively undeveloped and strategically located in the Asia-Pacific region.
LNG demand from Australia’s traditional Asian customers, however, has seen a steep decrease in recent years, driven by lower-then-expected downstream consumption in Japan, South Korea and China.
–Abache Abreu, firstname.lastname@example.org
–Edited by Haripriya Banerjee, email@example.com
Asia-Pacific LNG demand to rise to 245 mil mt by 2025: Western Australia Premier – Platts}