Emerging LNG markets in Asia: LNG, as a developing energy market around the world, found its leading players in Asia.
Japan and South Korea are traditionally essential players. This is because of their geographical situation, making pipeline projects meaningless to transfer their needed natural gas. Those countries decided to produce their needed electricity using cleaner energy sources. This gave the LNG a decent and growing market in their energy mix.
On the other hand, China and India are huge markets that could impress the demand in the international market based on their size and population. Using more LNG helps reduce air and environmental pollution in those countries whose electricity sector was based on coal. Using more LNG in China and India is because they need to use all forms of available energy to keep growing their economy. Moving toward a gas-based electricity sector is the first step in those countries.
LNG markets in Asia
Singapore is a prosperous country moving toward a gas-based electricity sector during the energy transition toward clean energy sources. Gas-based infrastructures produce approximately all the needed electricity in Singapore (around 95%). It happens in a situation that Singapore used to import its needed natural gas via pipelines from Malaysia and Indonesia. Being open to the global market and being around some important suppliers like Australia and Malaysia makes LNG an ideal option for Singapore.
Malaysia is another growing market while itself is a leading LNG producer in the international atmosphere. While natural gas has an essential role in Malaysia’s electricity sector, this country is looking for more potential markets worldwide. The geographical situation of Malaysia allows this country to compete over some significant markets in Asia like India, China, Japan, etc.
Countries that are located in the periphery have more potential to be active in the international LNG market. It could be seen that most LNG users are located in the periphery rather than the heartland. LNG market in Asia could be highlighted with countries with long borders with international waters. Countries like India and Japan, with their market size, could easily outweigh many European countries. This advantage makes investment in the LNG market in Asia more logical than in many other places in the world.
The electricity market in Asian countries
By emphasizing the electricity market in Asian countries, it is clear that some of them are ahead in their move toward clean energy sources than others. The importance of natural gas in Singapore’s electricity sector is more significant than the natural gas share in India’s electricity sector. You can expect that in the following decades, LNG gets a higher market share. It will get a higher market share in the countries that currently lagged in the case of LNG infrastructures.
With the influx of developing countries to the LNG market as a driving force, LNG has a bright future. Besides, that blooming of the LNG market among BRICS members could attract Asian suppliers to increase Asia’s production share in the international LNG market.