Asia's Production, Consumption of Natural Gas Set to Prosper
Asia’s production and consumption of natural gas will prosper over the coming years, according to oil and gas analysts at BMI Research.
Natural gas production in the region is set to grow by an average of 2-3 percent, annually, over the next ten years, with the bulk of this growth led by Australia, China, and to a lesser extent, Papua New Guinea (PNG), the analysts highlighted in a report sent to Rigzone.
“Combined gas production by Australia and PNG will see a 35 percent increase over the next decade, as feed-gas fields to new and existing liquefaction projects ramp-up output to support an upsurge in LNG exports,” BMI analysts said in the report.
“China alone will add more than 100 billion cubic meters of gas production … over the next 10 years, amid intensifying government efforts to curb air pollution and reduce reliance on coal, while improving technological capability of domestic firms gradually boost yields from shale gas and coal-bed methane plays,” the analysts added.
Recent regulatory improvements will also stimulate greater exploration and development of stranded resources in India over the coming years, and the commercialization of the Ca Voi Xanh field will boost Vietnam's output in the latter part of the next decade, according to the analysts.
BMI confirmed that the growth in Asia’s consumption of natural gas will expand at a ‘healthy’ average annual rate of 3-4 percent out to 2027, with the biggest growth seen in China, and to a smaller extent, India, supported by ‘the implementation of clean-energy policies and stricter emissions laws’.
“Rising electrification rates and improving gas pipeline connectivity drive growth in Indonesia, Pakistan, Vietnam and Bangladesh,” the analysts said.
“Growing focus on reducing pollution and coal use will see the share of gas in the region's power mix increase from 12 percent in 2018 to 15 percent by 2027,” they added.
Asia's crude oil and liquids production will see a steady structural decline in the next decade, averaging annual drops of 2.5 percent due to maturing fields and spending pullbacks by major producers, according to BMI. The region is expected to be a ‘global engine’ for refined fuels consumption to 2027.
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