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LNG Market Development in Asia

Energy, Energy Market

LNG Market Development in Asia

This report highlights the following key findings about the dynamics of the liquefied natural gas (LNG) market in this region. First, transparent and active spot markets are essential for identifying a price that reflects the fundamentals of supply and demand.

Second, China and India have become a source of substantial new LNG demand. Because both are large, even small shifts in demand patterns contribute to uncertainty and volatility in LNG prices. Third, in most Asian countries, companies and governments have little direct experience in the operation and construction of LNG re-gasification facilities and connection to electric power plants and distribution networks. Relevant laws and regulations have not been fully developed, leading to delayed decision-making and project implementation. Fourth, as LNG bunkering advances globally, there is the potential that bunker fuel markets will become fragmented. For LNG bunkering to succeed, intergovernmental coordination is necessary. Fifth, traditional patterns of risk allocation in financing new LNG export capacity are not adequate to meet recent market trends. Supportive government policies and new risk-sharing strategies are needed to for more projects to reach Final Investment Decisions.

Last but not least, the Panama Canal Authority (ACP) recognises its critical role as a transit point and a potential bottleneck in the movement of United States LNG exports to Asia. The ACP has eliminated unfair practices and physical limitations in their arrangements for LNG cargo passage.

Full Report 

RPR - 2018 - 04


Title Page

Foreword and Acknowledgement

List of Contributors


List of Figures and Tables

List of Abbreviations

Executive Summary and Key Findings


Chapter 1. LNG Market in Asia

Chapter 2. Challenges and Initiatives for LNG Supply Security in Asia

Chapter 3. US LNG Supply Security

Chapter 4. Policy Recommendations

Appendix Additional Exhibits for Bunkering


07 August 2019




Yoshikazu Kobayashi, Yanfei Li

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