LNG As a Sustainable Energy Source for Asia

Abstract

Natural gas is environment friendly and sustainable energy source capable of fueling economic growth worldwide today and for decades into the future. Since 1990, world gas usage has increased by 50% which is fulfilled by conventional & unconventional gas (shale gas & CBM), while in the Asia-Pacific consumption has tripled. LNG plays vital role to fulfill this requirement. It is one of the fastest-growing energy markets worldwide, with demand projected to double (approximately 480 MMTPA) over the next 20 years. The paper evaluates the role of LNG in sustainable energy future of Asia which consists of developing economies that contribute currently 60% of Global LNG imports. It includes cases of major Asian importers of LNG (Japan, China & India) with emphasis on Indian energy future. Natural gas presently contributes 11% of Indian energy consumption and which will rise up to 20 % by 2025. Key issues & challenges for Asian countries are lack of gas based infrastructure, geopolitical issue, role of regulators, uncertainty in domestic gas to power plant and lack of skilled manpower. The LNG value chain is complex & capital intensive. To drive whole value chain successfully it requires focus on strong tie up (long term contract), extra ordinary fiscal investments, capacity addition in infrastructure, safety & environmental leadership, Unconventional technologies and techno-managerial manpower. By addressing issues, we conclude that LNG supplies will be key sources to fulfill the energy demand of Asia for sustainable Energy future.