Asia tops in liquefied natural gas importing as prices are volatile due to its link with oil supply and its price. The rates at present stay at a premium due to yawning gap between demand and supply. Countries such as Qatar, Australia are developing large gas reserves and investing billions of dollars to develop fields and plants for liquefaction and ship it to importing nations such as India and China.
The energy demand in China and India is surging as rising economy boost air travel, car sales, and air conditioners. There is severe competition in the Asian market and aim to grab a bigger share of the Asian market. The output from aging fields such as Malaysia and Indonesia is also fast depleting. In addition these two countries are also using fuel to power plants and run public transportation. Asian demand for secure and regular supply from neighbouring sources will increase the oil prices. The oil prices in Asia are stable as there is constant demand from buyers and are considered as a globally traded commodity.
Strong LNG prices will provide an incentive for producers and in return they will invest in new projects or will upgrade existing ones. Australia?s liquefaction capacity has improved over Qatar?s growth and will continue to grow in the next decade. Presently, about 36 million tonnes per annum (tpa) of capacity is under construction in Australia and firms across the region plans to increase the production by more than 120 million tpa. Qatar?s liquefaction capacity for the current decade reached its target of 77 mtpa in February 2011. By end of 2010, Qatar will have 94 liquefaction trains in operation, bringing the total global capacity to 270.9 million tpa.
Source: Gulf News