If Australia is to meet its target of becoming the world’s largest producer of LNG by 2018 – as suggested by many experts – it’s essential that the local LNG sector has the right infrastructure in place.
This is especially crucial given that the demand for the energy source is set to surge in the coming years, as revealed in a new report from Frost & Sullivan. The consulting firm predicted that a variety of factors will combine to open up a number of opportunities for engineering, procurement and construction (EPC) contractors working in the Asia Pacific region.
According to Frost & Sullivan, EPC contractors in the APAC will play a major role in the key steps of the LNG supply chain, including exploration and production, liquefaction, transportation and regasification.
A number of external factors are set to drive the demand for LNG and keep Australia and its Asian rivals on their toes. For one, the environmental benefits of LNG are becoming increasingly recognised, offering a much more viable solution than oil and coal. The gas is also being touted as a suitable shipping fuel, as its low sulphur content means it is more environmentally compliant than fuel and marine diesel oil.
As such, demand for LNG in the APAC is on a high growth curve, with emerging markets such as Japan, South Korea and China set to challenge the established order of Australia and south-east Asian nations. With the revelation that demand from other export markets such as the United States and Europe is declining, LNG producers in the APAC region will need to make sure they can maintain a strong pipeline of demand.