Asia may face a Liquefied Natural Gas (LNG) shortage of 43 million tons by 2015, according to a report by Industrial Info Resources (www.industrialinfo.com), a market analysis firm covering a range of industrial segments.
Industrial Info Resources recently discussed the state of LNG supply and demand in Asia with Yves Cerf-Mayer, vice president of Liquefied Natural Gas (LNG) Marketing for Total Trading International. Cerf-Mayer said that in the past two years, not enough investment decisions on LNG projects in Asia have been made to meet the increasing demand for LNG in Asia from 2010 to 2015. The projected demand in Asia is expected increase by 6 percent in this period, with demand in China alone likely increasing 25 percent.
For Asian LNG consumers, between 2013 and 2014, the most likely source of LNG imports will be from Australia and Papua New Guinea. Australia is expected account for 60% of Asia Pacific”s potential new LNG capacity in the next 10 years.
According to Industrial Info, labor shortages and tight supplies of LNG production equipment pose potential long-term threats to the progress and budgets of LNG projects. Since 2000, the cost of LNG projects has gone up almost threefold, and the increase is likely to continue. LNG projects in Australia, Algeria, Iran and Nigeria are all in danger of being delayed, according to Industrial Info.
