Demand for LNG will post strong growth to 2027, outperforming the wider energy complex, according to oil and gas analysts at Fitch Solutions Macro Research.
“Emerging Asia will dominate growth, led by China. Asian emerging markets have been driving demand, globally, for a number of years, offsetting weakened growth in Japan and South Korea and declines in both Western Europe and North America,” the analysts said in a report sent to Rigzone.
“This trend is set to continue, but with regional buyers increasingly diversified,” the analysts added.
Fitch Solutions Macro Research said China will see its share progressively diluted, in part due to a slowdown in its own LNG import growth.
“Its share will also be driven lower by the number of new buyers entering the market. This includes Bangladesh, the Philippines, Myanmar and Vietnam, which, according to our data, will together add almost 40.0 billion cubic meters [1.4 trillion cubic feet] of LNG demand by 2027,” the analysts added.
“We also hold a strongly bullish outlook on the region’s other existing buyers – India, Indonesia, Pakistan and Thailand,” the analysts continued.
Outside of Asia the outlook for emerging market demand is more clouded, according to Fitch Solutions Macro Research.
“LNG demand growth in MENA [Middle East North Africa] will slow, dragged down by rising regional output. Latin America tells a similar story, with strong domestic gas demand offset by higher local output and rising competition from piped gas,” the analysts said.
“Demand in SSA [Sub-Saharan Africa] will grow, but from a zero base. Barriers to entry remain high in most markets in the region,” they added.source: by Andreas Exarheas|Rigzone Staff