Multilateral Joint Study on the Liquefied Natural Gas Market

Abstract

The potential to use natural gas can be increased in the East Asia Summit (EAS) region where energy demand is continuously increasing, and countries are urged to address pollution and climate challenges. Its increased use has three main advantages in the region: Abundant resource potential, including unconventional gas; Less geopolitical risk as resource distribution is more geographically diverse compared to oil; and Lowest emission, including carbon dioxide, among all fossil fuels. However, in reality, the natural gas utilization rate is not high outside of countries that produce natural gas themselves and some countries that have promoted the use of natural gas through government policy. EAS’ average share of natural gas consumption is lower than the world average. This is due to a variety of factors. Therefore, in EAS countries, the advantages of natural gas are not being adequately exploited, and there is a potential for further expansion in the future. EAS countries may also have elements that hinder the increase in the use of natural gas. If this is the case, then policymakers in EAS countries should promote efforts to reduce and eliminate those impediments in their countries as well as in the international LNG market. This research will propose who should do what among the key stakeholders to expand natural gas utilization in the EAS region.