Natural gas in Asia Pacific: Balancing supply security and energy transition

A special series of strategic reports for comprehensive insights on the APAC natural gas market

Asia is a diverse region when it comes to natural gas, with the levels of gas penetration in the local energy mix varying widely based on resource availability and affordability. Home to some of the world's largest and most mature LNG importers as well as emerging markets, the region not only accounts for a large share of the current global LNG trades but also is expected to continue to be the growth engine behind future demand. Many markets also have access to domestic production and pipeline imports in addition to LNG supply.

The roller coaster ride of global gas prices in the last year and a half significantly reduced Asian LNG demand. Yet, gasification plans for many markets in the region are only deterred and not stopped. The consensus on the need for an emissions-focused energy transition in the region has become consistently stronger, even when challenges to achieving it have also become more evident. As coal still accounts for 55% of total power generation and energy demand growth remains robust, natural gas will still be a good option for Asia to reduce its carbon footprint while supporting economic activities.

Reform efforts are ongoing to introduce more market factors to improve system efficiency, increase competition, and reduce costs to end users, and, in the process, create new opportunities for players across the value chain.

To explore these issues and identify opportunities and risks for market participants, S&P Global Commodity Insights is publishing a new research series in the coming months to explore the potential pathways of natural gas and LNG in Asia's energy mix and the implications on the global gas market.

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Shankari Srinivasan, Vice President and Head of Research at S&P Global Commodity Insights, is a leading expert on global gas research and the development of European gas analysis.

Jenny Yang, senior director, covers market analysis on natural and low-carbon gases at S&P Global Commodity Insights.

Zhi Xin Chong, director with the Gas, Power, and Climate Solutions team at S&P Global Commodity Insights, leads the emerging Asia market team covering natural gas and LNG in South and Southeast Asia.

Posted 5 July 2023

This article was published by S&P Global Commodity Insights and not by S&P Global Ratings, which is a separately managed division of S&P Global.