Global LNG industry moves towards balancing as 2016 witnessed rising LNG demand offsetting growth in supplies. The initial shock of oversupply estimates tend to settle down as the demand from Asia and Middle East was higher than expected, absorbing additional Australian supplies. However, the industry is expected to remain oversupplied and a buyer’s market will prevail to 2020.
Suppliers across the world continue to focus on Asian buyers amidst declined European and North American demand. Further, as the LNG prices in the region are linked up with the JCC crude, LNG is priced highest in the region. Accordingly, most existing and new suppliers are targeting Asian LNG buyers. Typically, most of the traditional Asian buyers focus on long term contracts to ensure supply security but rapidly changing industry dynamics are encouraging the growth of spot trade in the region.
Key drivers underlying the growth of Asian LNG industry-
ü Emergence of New Markets including Bangladesh, Pakistan, Philippines and Vietnam
ü Strong Expansion plans of existing regasification markets including China, India, Indonesia and Malaysia
ü Availability of new LNG supplies from Oceania, East Africa and US Shale
ü New Projects on-stream in Australia and Papua New Guinea
To gain further insights into the LNG industry in Asia Pacific region, please visit the following link-
https://www.reportmarkets.com/198985-Asia-Pacific-LNG-Trend…