Global LNG demand is on the rise, according to the Asia-Pacific-Cooperation Summit APEC 2014, held in Beijing.

APEC ministers met on the 7^th-8^th November 2014, with the Minister of Foreign Affairs of the People’s Republic of China, H.E. Wang Yi, and H.E. Gao Hucheng, Minister of Commerce of the People’s Republic of China co-chairing.

Promoting the LNG trade facilitation initiative, which was introduced by energy ministers of APEC member economies, the initiative’s aim is to ensure the development of healthy natural gas markets

Alongside global demand, supply is also set for an exponential increase, although a report by the International Gas Union indicates that “Asia is expected to be the area of the largest LNG supply growth”.

The U.S. is also throwing it’s hat into the ring, potentially competing with the Asian supply; “ Russian LNG will indeed have to compete with other LNG, for instance from Australia and the United States” says Tim Boersma, Brookings Energy Security Initiative director, but Andrei Koyneyev of the Institute for the U.S. and Canadian Studies, doesn’t believe the U.S. will prove a major competitor with the U.S. for China, the main consumer market; “ This [US LNG export to China] is expensive, because it [LNG cargo] will have to be hauled across the Pacific….a real long-term stable supply on the basis of American resource base on such a long distance is absolutely unreal”

Technology advance shakes LNG markets

As LNG technology gains pace, traditional limitations to large scale exports LNG, such as infrastructure, wear away. Liquefying, storing and transporting natural gas becomes easier, as well as discovery of new reserves, such as U.S. shale gas; “The world is keenly awaiting new LNG supplies from the US, although some uncertainty remains over the actual number of liquefaction projects that will start delivering soon” explained IGU president Jerome Ferrier.

Alongside this, global markets have been boosted by a general preference for more environmentally friendly sources and inconsistencies/uncertainties in the fossil fuel markets; “[Global gas demand]…is nurtured by a growing preference for low carbon energies and uncertainty over possible Korean and Japanese nuclear policies” continued president Jerome Ferrier

The APEC 2014 summit, in Beijing, was assembled under the theme of “Shaping the Future through Asia-Pacific Partnership”, focussing on the areas of Advancing Regional Economic Integration, Promoting Innovative Development, Economic Reform and Growth and Strengthening Comprehensive Connectivity and Infrastructure Development.