Global gas: Asia regional market report

Long-term Asian gas remains robust despite near-term LNG price pressures: Key highlights of the 2022 Asia gas & LNG outlook (May update) - Asian gas demand grows at 2.5% pa between 2022 and 2035 underpinned by pro-gas policies, coal-to-gas switching and rapid economic and population growth. - Challenging environment for domestic gas production: China is the only region where significant production growth is expected, but growth rates slow with increasing reliance on more challenging unconventional gas. Falling exploration activity and commercial conversion rates create the risk of an imminent peak in South and Southeast Asia gas supply. - LNG demand growth bounces back in the late 2020s: Energy security remains a strategic priority for governments. Europe’s strategy of diversifying away from Russia elevates spot LNG prices causing a near-term dampening effect on Asian demand, but we do not foresee risk of major long-term demand destruction.