A buyer’s LNG market

Demand may be set to surge, but Asia’s largest gas importers remain firmly in control

Asia's liquefied natural gas suppliers are becoming increasingly willing to provide more flexible terms to buyers to maintain a foothold in a market in which supply will outstrip demand until at least the middle of the next decade. Global LNG demand is forecast to rise by more than 30%, to 353.43m tonnes a year between 2016 and 2020, according to Wood Mackenzie, a consultancy. Meanwhile, demand in the Asia-Pacific region alone is forecast to rise by 27% in the same period, reaching 243.25m t/y. This represents almost half of total global demand growth. Energy-hungry markets in China, India and Pakistan will drive the increases. But global LNG liquefaction capacity is likely to grow even fast