SE Asia: moving from gas supplier to buyer

Risco's Tom Soulsby presents on SE Asia's evolving LNG import challenges.

Asia leads the world’s demand growth for natural gas, the fastest growing fossil fuel to 2035, driven by China and SE Asia. With SE Asia’s gas demand growth far outstripping that of its own supply, it must turn to imports via LNG, representing a transition from historic exporter to major demand market. An ability to accommodate this surge in imports is spurring a massive LNG regasifcation capacity build out within ASEAN.

Indonesia’s existing fledgling regas facilities offer insight into challenges to be overcome to ensure effective execution throughout the region. These include: 1. Access to LNG supply cannot be assumed merely because a country has regas facilities; 2. Need for downstream infrastructure (e.g. pipelines) to move the gas to demand markets; 3. Government support is essential.

A lack of effective execution will result in further constraining gas demand and thus impacting economic growth.

See the full presentation here.