Asian Buyers Say Prices, Demand To Trump Politics As Lure For U.S. LNG

Reuters

Asian natural gas buyers are counting on higher prices and growing demand to lure most North American gas shipments their way, even as U.S. lawmakers consider speeding up export approvals to cut Europe's dependence on Russia for the fuel.

Russia's seizure of Crimea from Ukraine has revived European worries about energy supply security. EU leaders are eager to end decades of reliance on Russian gas, and later on Wednesday will press the United States for clear commitments on a new source of supply.

U.S. lawmakers are already weighing changes to energy policy that would allow natural gas exports to any country that belongs to the World Trade Organization, and a key senator said on Tuesday that U.S. shale gas should be used to counter Russian influence in Europe.

Asian buyers, who have been counting on the fresh supply source to meet rising demand, said that Europe's option of increasing imports of liquefied natural gas (LNG) at the expense of Russian piped gas is a long-term, costly solution that may never happen.

"That is not going to happen overnight. You have to build up receiving terminals, which will take millions in investments and five or maybe ten years," chairman of Taiwan's CPC, Sheng-Chung Lin told Reuters at a gas conference in South Korea.

"Unless European countries show such determination, it won't happen," Lin said.

Global LNG output to reach 360mn tonnes by ’20: Total

Pratap John               Gulf Times

Over the next 10 years, natural gas will play an increasingly important role in meeting the world’s energy needs. LNG, whose many advantages include flexibility and ease of transport, will be instrumental in this “coming of age,” particularly in meeting Asian and European demand

Global LNG output is expected to reach 360mn tonnes and account for 13% of global gas supply by 2020, energy major Total has said in a report.

In 2010, LNG amounted to 9% of global gas consumption with production of nearly 220mn tonnes.

Over the next 10 years, natural gas will play an increasingly important role in meeting the world’s energy needs. LNG, whose many advantages include flexibility and ease of transport, will be instrumental in this “coming of age”, particularly in meeting Asian and European demand.

With demand rising at an average 3% a year for more than 30 years, natural gas has posted more dynamic gains than any other fossil fuel.

Total views the growing role of natural gas as one of the fundamentals of the future energy trends.