The Increasing Role of China and India in the Global LNG Market

March 24, 2011 - PRLog -- The Increasing Role of China and India in the Global LNG Market

GlobalData’s report, “The Increasing Role of China and India in the Global LNG Market” provides analysis on the growing importance of China and India in the global LNG industry. The report provides an overview of the global liquefied natural gas (LNG) market, detailing the growth in liquefaction and regasification capacities, major players, key trends, contracted LNG supplies and trade movements. The report details the position of China and India in the global LNG industry in terms of regasification capacity, contracted capacity, imports and upcoming LNG terminals. It provides in-depth analysis of the regasification industry in China and India in terms of future growth, demand and planned terminals. The report also provides detailed analysis of the long-term LNG supply purchase contracts signed by China and India to secure their future supplies. Finally, the report analyzes the effect of growing LNG demand in China and India on the global LNG industry.

China and India to Witness Rapid Growth in LNG Demand

The growing natural gas consumption in China and India will lead to the increased dependence of these countries on LNG imports, which are expected to touch 50 million tons per annum (MMTPA) by 2015.

By 2015, China and India as a combined LNG importing entity will stand third in terms of contracted LNG supplies, with Japan and the US ranking first and second respectively. The contracted LNG supplies to China and India are expected to increase from 15.3 MMTPA in 2009 to 44.7 MMTPA in 2015.

The figure below details the position of China-India in terms of contracted LNG supplies in 2009 and 2015.

China-India, Global Position by Contracted LNG Capacity (MMTPA), 2009-2015

Source: GlobalData/ Energy eTrack LNG Database

China Rapidly Securing Long- Term LNG Contracts To Secure its Future Natural Gas Supplies

China has been aggressively signing long-term LNG contracts to secure steady natural gas supplies for its growing domestic demand. As of 2009, the country had 26.5 MMTPA (1,290.6 Bcf) of secured LNG supplies through long-term LNG contracts. In addition, the two Chinese national oil companies (CNOOC and Petrochina) have recently signed a memorandum of understanding with Qatargas to increase LNG supplies by 5 MMTPA. There are also talks about further increasing the supplies by 2 MMTPA. The agreements, if signed, will increase the contracted capacity of China by 285% from 8.7 MMTPA (423.7Bcf) in 2009 to 33.5 MMTPA (1,631.5 Bcf) in 2015.

Asia-Pacific is Poised to Become a Major LNG Trade Hub By 2015

The development of China and India as major LNG importers and Australia as a major LNG exporter will lead to increased LNG trade movements in the Asia Pacific. As of 2009, based on their long-term LNG supply commitments, the top five LNG exporters in the world are Qatar, Indonesia, Malaysia, Nigeria and Australia, in that order. By 2015, although these countries will continue to dominate LNG exports globally, Australia is expected to become the second largest LNG exporter in the world.

Currently, the top five global LNG importers are Japan, the US, Spain, the Republic of Korea and France. By 2015, although Japan and the US will continue to dominate, China, through its recently signed long-term LNG contracts, will move up to the third spot. India too will become an important LNG importer, standing at the seventh position worldwide.
The figure below details the major LNG trade movements based on long term LNG contracts in 2015.

Major LNG Trade Movements Based on Long-term LNG Supply Contracts (MMTPA), 2015

Source: GlobalData/ Energy eTrack LNG Database

With both LNG liquefaction and regasification capacities rapidly increasing in and around the Asia Pacific, the area is expected to account for the bulk of the LNG trade movements during the period 2010-2015.

Growth In Natural Demand Drives China-India LNG Regasification Capacity Growth

The expected increase in natural gas consumption in China and India has forced the countries to rapidly develop their LNG regasification industries. The overall LNG regasification capacity in China-India is expected to increase from 1,317.1 Bcf in 2009 to 4,362.0 Bcf in 2015, increasing by over three times. By 2015, it is expected that the two countries together will stand fourth in terms of total regasification capacity, just below the Republic of Korea. The countries will be second in terms of the growth in regasification capacity during the period 2009-2015.

Global, Major Countries By Regasification Capacity (Bcf) and Growth Rate (%), 2009-2015

Source: GlobalData/ Energy eTrack LNG Database For more details, please vist http://www.reportreserve.com/reportdet.php?company=Global...

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