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Increasing demand for LNG in Asia is taking quantities even from Norway

Arctic Aurora vessel

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The increasing demand for LNG in Asia is taking amounting from sources at unexpected places. Countries like China, South Korea and Japan are paying large amounts of dollars for liquid fuel. The demand is so strong that reaches as far as Norway, where Statoil ASA, which usually export liquefied gas to Europe, sent a freighter to the East and plans also new supplies.
Asia receives a major portion of the fuel mainly from Australia, including the gas fields of the Gorgon deposit near its northwest coast. Other major suppliers are also Malaysia, Papua New Guinea and Indonesia.
The tanker Arctic Aurora will arrive in South Korea later in the week, showing that the market for liquefied natural gas is oing global as more cargo is traveling between the Atlantic and Pacific. For Statoil this means a chance to get more profit from its gas production, which is already at almost full capacity.
“What we are seeing in Asia is high price”, announced Statoil, adding that they were not useful if the company did not have the capacity to send cargo.
In the past, the manufacturer has sent ships to Malaysia, China, India and Japan, but its main markets remain Europe and America.
Besides exporting its production from the polar field, which produces about 40 cargo ships per year, Statoil buys and sells liquefied natural gas on the market. The company traded nine vessels raw material in each of the past two years, intending to increase that quantity.
However, rising transport costs can reduce the income from freight forwarding to the east, and it is not even possible to overcome the price difference between Europe and Asia. He added that, given the declining number of ships available for supply, registering profits from the Asian market is not yet easy.
Nevertheless, Statoil management considers that demand in Asia increases market prices, the correlation between which is expected to intensify.