Asia needs flexible liquefied natural gas supply as well as increased shipping availability and terminal access to develop a competitive natural gas market, according to the International Energy Agency.
Such a market is needed if the region wants to develop a reliable natural gas price to move away from the long-term, oil-linked LNG contracts predominant in Asia, the Paris-based adviser to 28 oil-consuming nations said in its medium-term gas market report released today.
“Governments in the Asia-Pacific region will need to signal their willingness to facilitate competition further downstream,” the IEA said. “The North American and European experience shows that competitive natural gas markets will not develop overnight, and will not necessarily lead to a lower price.”
Asia’s buyers may reap the benefits of increased portfolio flexibility from the development of a liquid, well-traded gas market in the region, the IEA said.
To contact the reporter on this story: Chou Hui Hong in Singapore at email@example.com
To contact the editor responsible for this story: Alexander Kwiatkowski at firstname.lastname@example.org