The prize for LNG sellers will be ‘significant’ as demand in Asia grows, energy consultancy says

The prize for LNG sellers will be ‘significant’ as demand in Asia grows, energy consultancy says

The buyers' market in liquefied natural gas may continue over the coming years due to oversupply, but sellers could stand to gain as demand in Asia grows, according to an energy research company. Global demand is not expected to outpace supply until the mid-2020s, but even that respite may be short lived once new supply from projects in Qatar and the U.S. come online, said Valery Chow, head of Asia-Pacific gas and LNG research at Wood Mackenzie. "Despite these developments, the prize for suppliers remains significant given the potential growth of future demand in Asia," he told CNBC in an email.. LNG demand in Asia is growing "significantly faster" than in the rest of the world because of the region's economic and population growth, he said. Growing demand In an April note, Gavin Thompson, Wood Mackenzie's Asia-Pacific energy vice chairman, said Asia's LNG markets have been "remarkably resilient." "Strong demand, weak domestic production and supportive policies mean Asia will account for an incredible 95% of global LNG demand growth between 2020 and 2022," he wrote. Chow said he predicts that China, South Asia and Southeast Asia will drive incremental LNG demand in the world over the next two decades. "Where