Asia is the world’s largest consumer of LNG. Asian markets present the best opportunity for LNG exports from western North America because the region offers high average prices and unmatched LNG demand growth for the next decade (86 percent of global growth), and proximity to Asia markets from the West Coast.
The U.S. is the world’s leading producer of oil and gas and is positioned to further support its allies, especially those who are dependent on LNG imports and offset the geopolitical reach of rival nations who have less regard for our environmental and democratic principles. Mexico and Canada, as neighbors and longstanding allies with shared values, are integral to this vision of forging new partnerships with rapidly growing countries in Asia.
By providing market access for Western natural gas, the U.S. can use LNG exports to positively impact energy geopolitics and improve its national energy security by bolstering the energy security of its allies. U.S. LNG can offset the dependencies of nations around the world who are beholden to energy supplies from the Middle East and Russia. U.S. natural gas is produced with a lower environmental impact than any other nation’s.
Asia is the big prize when it comes to current and future LNG customers and the competition around these markets is indicative of its importance. Japan is currently the world’s largest LNG importer, and industry experts project that status to continue. Japan’s stated goal is to diversify its energy portfolio by accessing new markets, primarily in North America and East Africa. China is expected to overtake Japan as the primary importer of natural gas, with overall Asian consumption expected to nearly triple from 2010 levels by 2025.
Other emerging Asian economies – including India, South Korea, Pakistan, Bangladesh, Vietnam and the Philippines – are forecast to significantly boost their LNG imports in the coming years.
In the absence of reliable supplies LNG, these nations are likely to ensure their energy security through greater utilization of local coal and oil.