The Pacific Rim and global natural gas

Abstract

There is a growing interest in natural gas as a part of national or international strategies to moderate the environmental consequences of fuel use. Although the underutilized global gas resource justifies the interest, the future consumption of gas is likely to be constrained by the high capital costs of new transportation facilities to bring remote gas supplies into areas of growing energy demand. The Asian Pacific Rim countries include rapidly growing demand areas as well as significant reserves of gas. The region will continue to play a leading role in the evolution of a world trade in gas. Gas resources within the Asian Pacific region are adequate to serve the foreseeable demands, but historically the region has utilized LNG imports. Financial constraints upon the gas producing countries of the region and political instability in some of them will probably continue to require the importing of substantial quantities of gas from the Middle East and possibly from Alaska and the former USSR as the resources indigenous to the region itself are developed more slowly than demand. The financial arrangements and contractual approaches that evolve to meet the needs of the Asia Pacific Rim will shape the future of world LNG markets.