Points to watch in global LNG

So far liquefied natural gas seems to be going great guns especially in the emerging Asia as the big exporters are quick enough to respond to the demand for it is blazing around the globe. The hustle and bustle has started in the sector with not only the big three: Qatar, Australia and Malaysia hastening up, but also smaller Asian rivals busy devising pipeline infrastructure. It is noteworthy to mention here that the emergence of the well-described energy demand in China and India, many gas producing companies have started shifting to these powerhouses, winding up their facilities in other relatively insignificant regions. On the supply side, Qatar is the largest exporter of LNG with a capacity of over 55 million tonnes each year. With a share of around 60 percent in LNG exports to Asia, Qatar has recently played a huge role in gulfing the gap brought by the Libyan crisis and the heightened demand across the Continent. With an export capacity of almost 20 million tonnes, Australia is hoping to amass 25 to 40 million tonnes of additional capacity in the coming years. However, if US is able to execute its LNG exporting plan on time, it could leave Qatar behind. With idle as well as new capacity diversion to Asia, a more remarkable move would that be of Russia where one could hope for a major shift or at least addition to the markets it serves. As for Iran, only time would tell if it can emerge from the sanction-hit phase and prosper as a major LNG exporter since it has the largest reserves at hand. The supply side is strong and is becoming more oligopolistic in nature evident from the bouncy portrayed by Qatar in inking a 20-year deal with Malaysia to supply 1.5 million tonnes annually, and Gazprom in Russia promising to supply 7.5 million tonnes to various companies. . On the demand side, consumption has grown steadily, yet continuously in Asian economies. According to various sources, demand for LNG in China, the largest consumer of gas in Asia, is expected to rise from 9bcf per day today to as high as 40bcf per day in 15 years. However, on the flip side, its indigenous resources especially shale gas reserves and its pipeline development could act as deterrent in increasing the global LNG consumption The triple catastrophe of Japan also blew air into the LNG sector. Similarly rising energy demand and hence efforts to procure LNG by India, Singapore, Vietnam, etc, are further pushing up the imports of the liquefied fuel. Though LNG sector has a sad beginning during the World War II times up until the early seventies, the future of LNG sector seems all perked up: Thanks to the LNG suppliers having kept pace with demand partly due to the excess capacity.