Significant additional supply of U.S. liquefied natural gas (LNG) will be needed to support long-term emissions reductions in Asia, the Asia Natural Gas and Energy Association (ANGEA) says.
ANGEA CEO Paul Everingham said a recent study by Wood Mackenzie showed increased U.S. LNG production was critical to emerging nations in South and Southeast Asia reducing their current reliance on coal-fired power generation.
This is in contrast to the U.S. Department of Energy findings published today which suggest U.S LNG would displace renewable energy in export markets.
“U.S. LNG is not being used by emerging Asia as a replacement for investments in renewable energy. It is being used as a replacement for coal to provide energy security and reliable electricity, both of which actually support growth in renewable energy generation,” Mr Everingham said.
“Wood Mackenzie forecasts that demand for LNG in Asia will nearly double to 2050, driven by a strong increase in demand from South and Southeast Asia through the 2030s and beyond. Much of this demand growth involves emerging economies, such as the Philippines and Vietnam, seeking a cleaner alternative than coal for reliable power generation.
“Allies of the U.S. in Asia seek to use LNG to decarbonize their energy systems but the halt to export approvals has made it unclear whether they will be able to access affordable future supply. Some have said as much publicly and others have raised it as a key area of concern during meetings with ANGEA.
“Without significant additional supply from the United States, global LNG production will become more concentrated, and prices will rise and likely become unaffordable for emerging Asian nations. If this happens, these nations will simply continue to rely heavily on coal.
“Wood Mackenzie’s projections show a longer-term extension of the current U.S. export approvals pause would result in up to 95 million tons of additional coal being used in Asia annually by 2035.
“This is the equivalent of having 20 million extra cars on the road each year and would severely damage Asia’s ability to decarbonize and make progress on emissions reduction targets.”
Ryosuke Tsugaru, Chief Low Carbon Fuel Officer of JERA, emphasized the importance of LNG production from the United States as a major and crucial source of supply globally.
He highlighted its role in ensuring supply diversity for Japan, a country heavily reliant on imported energy, which is vital for the nation’s energy security.
Mr Tsugaru also noted that U.S. LNG will be an essential component of Asia’s carbon neutrality goals, enabling economic growth across the region in an affordable manner:
“We also expect the global LNG demand to grow to more than 500mtpa in 2030, with U.S. LNG exports supplying a significant portion of this demand, potentially accounting for more than 1/4 of the global LNG supply.
“U.S. LNG is pivotal to the growth of Asia and the world, driving their sustainable energy transition.”
Media contact
Simon White
simon.white@angeassociation.com
Ph: +614 38 23 08 77
About ANGEA
Based in Singapore, ANGEA is an industry association with a membership that spans the full global gas value chain: from production, to transport, infrastructure, manufacturing, end users, and others. ANGEA works constructively with governments, society and industry throughout Asia, to build effective and integrated energy policies that meet each country’s climate objectives, while promoting national and regional economic sustainable growth. Visit angeassociation.com
