Economic expansion, urbanisation and population increases have already made Asia the key driver of global gas market growth over the past decade.
What can be expected over the next 10 years, and what investment opportunities will be created as a result?
Consultancy, Wood Mackenzie recently published a new 10-year investment horizon outlook for global gas, based on insight from its Lens Gas & LNG data analytics, plus a country specific outlook for China.
In a snapshot of the report, WoodMac said that Global LNG prices will move lower on a wave of new supply.
With limited growth in domestic production and a significant proportion of supply coming from imported LNG, global LNG prices will be an important factor in Asian markets.
Softening prices supported increased LNG demand in South and Southeast Asia in 2024, along with a return to LNG contracting in India.
However, limited supply, amplified by geopolitical tensions, mean that prices will remain volatile in the short term.
Looking ahead, a wave of new supply will bring about a structural change in the global LNG market from 2026.
Supply growth risks have resulted in WoodMac upgraded expectations for average LNG prices somewhat through to 2034.
In China, a growing uncontracted demand gap in the market after 2026 will create additional opportunities for LNG sellers.
Meanwhile, in Northeast Asia, despite flat overall demand, uncontracted demand will expand over time, WoodMac said.
