Over 50% global LNG passed through South China Sea
Saturday, April 13 2013 @ 09:55 AM AST
Contributed by: michaelariston
With around 6 trillion cubic feet (Tcf) of Liquified Natural Gas (LNG) trade shipments, more than 50% of the global LNG trade passed through the South China Sea in 2011, a Morgan Stanley Research report revealed this month. Using now available data from the Energy Information Administration, Morgan Stanley Research (Europe) said: "The South China Sea is a major destination for LNG exports with around 6 Tcf of liquefied natural gas (LNG), which is more than 50% of the global LNG trade, passed through the South China Sea in 2011."
The report authored by Martijn Rats, Jamie Maddock, Robert Pulleyn, Haythem Rashed, Sasikanth Chilukuru, James E Lamb and Aaditya Chintalapati said: "Half of this LNG then continued on to Japan, with the remainder shipped to South Korea, China, Taiwan, and other regional countries. Almost 75% of all LNG exports to the region came from Qatar, Malaysia, Indonesia, and Australia.
East Asian demand for natural gas is likely to continue growing, especially as Japan increases its reliance on LNG imports to replace the lost energy from nuclear power outages following the *censored*ishima crisis. The impact of this is that the proportion of the global LNG trade passing through the South China Sea in the future will increase.
"It is anticipated that much of the new LNG supply will come through the Strait of Malacca, although some countries like Indonesia are investing in their own LNG export capacity."