LNG PROSPECTS IN THE ASIA-PACIFIC REGION

Much of the Asian Pacific region is characterized by both relatively high growth rates in electricity demand and a deficiency in domestic fossil fuel energy, One result has been the rapid expansion of regional seaborne trade in LNG and coal. This paper suggests that regional use of LNG will continue through this decade primarily due to incremental expansions at existing sites, Thereafter some combination of greenfield LNG units and greenfield gas development will be required. These new projects would be multibillion dollar investments that appear to require prices considerably higher than now typical to assure development, Consequently, LNG is likely to lose market opportunities in the post 2000 period unless consumers are willing to pay what could amount to a substantial premium over current prices for LNG.