South-east Asia to boost domestic LNG supply with imports as demand climbs: report
SOUTH-EAST Asia will need more liquefied natural gas (LNG) imports over the next decade, as regional suppliers look unable to keep up with demand.
Regional natural gas demand could hit some 20 billion cubic feet per day (bcfd) by 2030, up from around 15 bcfd in 2020, according to market research firm GlobalData, which did not count Laos and Cambodia in its estimates.
"Despite the region being a net exporter of gas supported mainly by major gas producers Malaysia and Indonesia, strong demand growth could outpace the regional supply by the end of the decade," GlobalData said on Thursday.
That's as Thailand and Singapore notched record LNG imports in 2020 - with Thailand challenged by natural declines in both domestic supply and imports from Myanmar.
Granted, GlobalData has projected Malaysia will lead global offshore natural gas production in 2025, based on its pipeline of offshore projects.
Malaysia is forecast to hit 3.1 bcf of output that year, or 12 per cent of global supply - ahead of Iran and Qatar.
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But GlobalData warned that Brunei, Vietnam and Myanmar could see domestic supply declines unless they make progress on gas projects that are still undeveloped.
Said Daniel Rogers, senior oil and gas analyst at GlobalData: "In the gas and LNG outlook for the region, both Thailand and the Philippines' gas supply-demand gaps are expected to widen as steady demand growth is met by the declining domestic supply.
"Both countries will look to the LNG market to fill the gap where domestic production or pipeline imports are unable to, through additional LNG regasification capacity."
As such, he noted market opportunities in LNG imports, as well as in regasification - that is, the process for converting LNG to natural gas.
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