LNG exporters to Asia have a slew of challenges to contend with, however, including the prospects for project sanction delays and other demand-side factors impacted by global health scares, relative economic underperformance, and trade disputes and wars. The continued drop in global natural gas prices continues to constrain prospects.
Asian LNG prices reached extremely low levels in the 1Q of 2020 amid a glut of global natural gas production and the start of additional global export capacity. Less severe winters, increased demand-side efficiencies, and potential new LNG capacity could continue to depress price levels. The prospect of ever-increasing Asian LNG demand prompted massive capacity investment in both upstream developments and midstream infrastructure. The factors may come as a boon to demand centers, but operators with oil-linked contracts are at a disadvantage.
This webcast describes the key drivers, challenges, and impacts of Asian LNG capacity investment to 2025 and an examination of the implications for a variety of far-reaching factors. We look at the effects of potential oil-linked vs. hub-based pricing in the Asian project economics context, highlight critical factors supporting or inhibiting project progression, and provide a five-year outlook on anticipated capacity expansion for key Asian LNG import nations, including China, Japan, India, and South Korea.