Asian LNG imports to grow 3.7% annually over the next decade

This is to support the increasing demand, according to Wood Mackenzie.

Asian countries’ imports of liquified natural gas (LNG) were expected to increase 3.7% annually over the next decade to address the growing LNG demand in the region, according to Wood Mackenzie. 

In a blogpost, WoodMac Asia Pacific Vice Chair Gavin Thompson said that the outlook for Asian gas demand is “overwhelmingly positive,” with the region’s gas consumption is seen to grow at almost 3% a year over the next decade, despite the pandemic restrictions and “sky-high” spot prices and competition from renewables.

“Asia’s biggest gas market challenge is now meeting demand. The near-certain long-term decline in regional gas production makes rising import dependency inevitable, future-proofing future Asian LNG demand: we expect imports to grow at a heady 3.7% a year over the next decade,” he said.

Thompson added that China is leading the demand growth, whilst Southeast Asia and South Asia were becoming the fastest LNG markets globally.

The new long-term LNG contracting rebounded to its highest level in five years in 2021 due to the increase in Asian demand, with buyers from the region accounting for 85% of global contracting, he said.

He added that much of the newly contracted supply will come from Qatar and the US, “plugging the fast-growing gap between Asian gas demand and declining indigenous supply” in the region.