Asian buyers will not see a reduction in gas price caused by the LNG exports coming from North America, according to the executive director of International Energy Agency Maria van der Hoeven.
Speaking at an energy conference in Singapore, van der Hoeven said that the US shale gas revolution will not solve Asian gas problems as there is not enough gas to supply the entire region, and it will come at a cost, reports Platts.
IEA head also noted that there are ways of lowering the price of natural gas in Asia, namely, to find more and use less. She added that both scenarios are possible as Asia holds 10% of the world’s potential conventional gas reserves.
However, not all gas will be produced, nor will the produced gas be exclusively used in the region, said van der Hoeven.
It was also noted that some of the region’s former gas exporters, such as Malaysia and Indonesia, turned to importing gas and the downside is that Asia will not become self-sufficient in gas.
LNG World News Staff; Image: IEA