Asia needs market reforms to capitalize on the "golden opportunity" represented by liquefied natural gas (LNG), the International Energy Agency (IEA) said Thursday, Oil and Gas Daily reported.
The IEA issued a report saying natural gas prices in Asia may be four times as high as in other markets. Asian demand for gas, meanwhile, is expected to grow by 8 trillion cubic feet, while 5.3 trillion cubic feet of new supplies of liquefied natural gas come on stream by 2020.
"The advent of new LNG supplies represents a golden opportunity for Asia, but first the region's governments must address the rigid and illiquid markets that undermine affordability and accessibility for consumers," IEA Executive Director Maria van der Hoeven said in a statement from Tokyo.
Asian energy demand has drawn interest from some of the world's largest natural gas producing nations. In September, Alexander Medvedev, deputy chairman of Russian energy company Gazprom, said Asia "is the most attractive" market for companies like his.
By 2030, Gazprom said it expects the Asia-Pacific region will account for 25 percent of the total consumption of natural gas.
The IEA said LNG infrastructure is capital- and energy-intensive, but runs the risk of losing its market share to everything from carbon-intensive coal to low-carbon electricity sources.
"For gas to be a sustainable contributor to energy security in the region, Asia must look to reforms," van der Hoeven said.
