Powering up emerging markets through LNG
Latest articles by NicholasView Nicholas Browne's full profile
Many emerging markets around the world continue to struggle to meet power demand. Oil-fired generation is common, but this can be an expensive option. Meanwhile, power outages and localised pollution are prevalent, which can limit economic growth.
As security of supply becomes urgent, developing markets of all sizes are turning to LNG to provide a solution.
What makes LNG an attractive choice?
Director of Gas and LNG research Nicholas Browne explains.
Four reasons why LNG is a becoming an attractive choice for emerging markets.
How competitive is LNG?
LNG holds its own in comparison to oil, which still accounts for over 25% of the generation mix in over 40 countries.
There are plenty of fuel options for emerging markets that want to reduce their reliance on oil: these include coal and renewables.
If you’re purely looking at economics, LNG doesn’t compete with these alternatives. But every market is different and there are several where LNG is a strong contender.
So, what's the opportunity for LNG globally?
We forecast that the global LNG market will reach close to 450 Mt by 2025.
Most of this growth will come from established markets like China, India and in South East Asia.
Meanwhile, we expect 12 new markets to start importing LNG by 2025, contributing some 20 Mt of demand growth. Beyond this, there may be a potential an additional 21 Mt as a result of oil to gas switching in the power sector.
More details are available in our report: “Opportunities and challenges facing LNG to power in emerging markets. Read it to get:
- Global LNG growth forecasts
- A deep-dive analysis into the comparative costs of different power technologies
- Understand the advantages, disadvantages, and constraints for each power supply