Asia Pacific gas & LNG: 5 things to look for in 2023

Table of contents

• Executive summary
• 1. Europe and China demand dynamics drive LNG spot prices
  • Prices risked to the upside with incremental liquefaction capacity in short supply
  • High prices cramp Asian import demand
• 2. Subdued long-term LNG contracting in Asia amid rising contract prices
  • Strong global contracting momentum, but all quiet on the Eastern front (ex-China)
  • The return of Brent-linked contracting
  • US LNG contracting gets interesting
• 3. Falling domestic supply across most of Asia, but a few bright spots for upstream activity
  • China – NOC E&P investment continues to underpin surging supply growth
  • South Asia – Market reforms key to boosting domestic gas production
  • Southeast Asia – Mature fields in decline with limited new fields as backfill
• 4. Sharp rise in Asian regasification capacity, but pricing reforms needed to sustain growth
  • China – Continuous infrastructure build and market reform
  • India – New regasification terminals in the east should unlock large areas of future demand
  • Southeast Asia – First LNG imports for Vietnam and Philippines, but long-term pricing remains uncertain
• 5. Asian governments remain supportive of gas & LNG despite near-term affordability issues
  • Northeast Asia – Resilient LNG demand supported by energy security and transition policies
  • China – Safeguarding energy security and affordability to ensure socio-economic stability
  • South Asia – Gas affordability remains the biggest driver of market development
  • Southeast Asia – Continued support for LNG imports with a concurrent search for alternatives

Tables and charts

This report includes 5 images and tables including:

• Asia gas production
• Asia regasification capacity vs demand
• Asia LNG demand
• LNG contract ACQ signed to end users
• Oil-indexed contract slopes delivered to Asia

What's included

This report contains:

• Asia Pacific gas & LNG: 5 things to look for in 2023

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