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Project Insights

Pipeline constraints could hinder Asian LNG imports

South Asia will struggle to replace China as a growth engine for absorbing all the new volumes of LNG set to be brought online next year South Asia will struggle to replace China as a growth engine for absorbing all the new volumes of LNG set to be brought online next year.
By Andrew Walker 29 November 2018 Asia Pacific / LNG 0 33489
China’s Ningbo LNG terminal. (CNOOC)

The LNG industry’s faith in Asia’s ability to help absorb the 42 mt of incremental LNG supplies forecast to hit the market in 2019 may be misplaced given the pipeline constraints faced by the region. 

The rapid growth in Chinese LNG demand in recent years has kept the market balanced by allowing China to take many of the cargoes produced by projects in Australia, the United States and Russia. However, Chinese demand growth is anticipated to slow in 2019 as infrastructure constraints kick in.

Global LNG supplies grew...