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and
A
recent report from the US Energy Information
Administration (EIA) suggests that declining
LNG imports in Japan and South Korea have
been partially offset by increasing imports in other Asian
countries.
1
The EIA notes that LNG shipments into Asia’s two
mature markets, as well as China, averaged 18.2 billion ft
3
/d
in 2015, a 5% decline on the previous year. However,
significant growth has been seen in emerging Asian LNG
markets, with Pakistan, Thailand, Malaysia and Singapore
importing a combined total of 7.36 million t last year,
according to the International Group of LNG Importers
(GIIGNL).
2
Thailand is currently leading the way for the emerging
Asian markets. The country doubled its LNG imports to
2.7 million t last year, driven by a surging demand for
natural gas as its own natural resources decline. The CEO
of Thailand’s national oil company, PTT, has confirmed
that the country is ready to take advantage of the current
LNG buyers’ market. In a recent interview with
Bloomberg
,
Tevin Vongvanich revealed that he plans to sign long-term
agreements with several LNG suppliers by the end of
this year as the country aims to add approximately
3 million tpy of committed volumes.
3
The company is
increasing the capacity of its Map Ta Phut LNG Terminal
to 10 million tpy this year, while plans are in place for this
figure to eventually rise to 11.5 million tpy in 2019. A second
receiving terminal has also been mooted.
Meanwhile, Pakistan was a significant entrant to the
LNG market last year, with the opening of the Engro Elengy
Terminal in Port Qasim, which is using Excelerate Energy’s
Exquisite FSRU
. Following on from the success of this
terminal, BW Group recently announced that it has signed
a 15-year agreement with Pakistan GasPort Ltd to provide
regasification services utilising a new FSRU for a second
terminal in the country, due to be delivered in 4Q16.
The terminal will have a peak regasification capacity of
750 million ft
3
/d (more information about this project can be
found on p. 8 of this issue).
Aside from the emerging Asian markets, LNG demand is
expected to grow in China, India and Taiwan. In this month’s
regional report, starting on p. 12, Douglas-Westwood
(DW) predicts that US$38 billion will be spent on import
facilities worldwide between 2017 and 2021 – a rise of 25%
compared with the 2012 – 2016 period. Although Asia’s
share of global expenditure on regasification facilities
will fall from the whopping 92% recorded during the
2012 – 2016 period (on the back of surging demand in Japan
and South Korea), DW still expects the continent to account
for 66% of regas expenditure up to 2021, driven by China
and India.
While we can expect a stormy ride in the near future
as LNG oversupply threatens to persist beyond 2021, DW
believes that LNG demand from other Asian countries will
ensure a demand-supply balance in the long-term.
1. ‘As Japan and South Korea import less LNG, other Asian
countries begin to import more’, US Energy Information
Administration, (24 August 2016).
2. ‘The LNG Industry in 2015’, International Group of
Liquefied Natural Gas Importers (GIIGNL).
3. SUWANNAKIJ, S., JORDAN, T., and MURTAUGH, D.,
‘Thailand embarking on LNG shopping spree as glut
cuts prices’,
Bloomberg
, (25 August 2016).
