Brunei stands to gain from the rising demand for LNG and the growth of the trade driven by the decline of fossil fuels in gas-consuming countries, revealed at a recent energy symposium in the region.
At an energy-talk symposium between the Brunei Energy Association (BENA) and Brunei-Korea Association for Friendship (B-KAF), it was revealed that LNG trade accounted for around 6% of the world’s natural gas consumption and 26% of total natural gas trade in 2002.
Present at the symposium were representatives from the Korea Gas Corporation (KOGAS), the world’s single largest LNG buyer having imported 26.6 million tonnes alone last year. It is thought that the Sultanate of Brunei may benefit substantially if it is able to cater for the growing demand in LNG, which it is estimated will increase KOGAS’ total imports this year to 24.9 million tonnes.
Japan, South Korea and Taiwan generally depend on LNG for more than 90% of its natural gas needs, while the market is currently facing changing trends. Long-term contracts have been showing more flexibility of late with some newer contracts designed to provide only a base supply which can be supplemented by short-term contracts during periods of high demand.
Projections suggest, according to the Borneo Bulletin, that global LNG demand will increase by 56% in 2025 to around 3.475 million tpy.