11 June 2013 15:00 [Source: ICIS news]
KUALA LUMPUR (ICIS)--Global demand for liquefied natural gas (LNG) is projected to hit 420m tonnes/year by 2025, with supply shortfall projected at 150m tonnes/year after taking into account existing projects and those under construction, an executive from BG Group said on Tuesday.
Underlying supply will need to grow 9% per annum and this is a challenge because this entails heavy investments, BG chief operating officer Martin Houston said in his keynote address at the 17th Asia Oil and Gas Conference (AOGC) in Kuala Lumpur.
Filling up the supply gap requires $400bn (€300bn) in investments, Houston said.
The US “is not a panacea” for global LNG supply as not all projects are likely to be built within the initially specified timeframe, he said.
The US is expected to add 45m tonnes/year to global LNG supply by the end of the decade, Houston said.
He cautioned the industry on its supply “optimism”, since the shale success in the US may not be replicated elsewhere, he said.
“More supply will take longer than many envisage,” he said, citing factors such as regulatory approvals, financing and pricing that need to be considered.
($1 = €0.75)
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