Why China could beat South Korea as the second largest LNG market

China's new regulations could improve infrastructure access.

In 2016, Asia's emerging LNG buyers contracted nearly 18 Million tonnes of LNG supply, according to Kerry-Anne Shanks, Head of Asia gas and LNG at Wood Mackenzie. This is over 60% of new contracts globally. Contracts taken up by new Asian buyers was 3 times as much as those contracted by Asia's traditional buyers.

Market liberalisation is the first reason as it allows more players the right to contract LNG. Buyers are also attracted by cheaper and more flexible LNG supply deals.

"2017 will test the resolve of Asian policy makers to open up their gas markets. Japan opens its gas market to competition in April and we’ll be watching whether China’s new third party access regulations translates into improved infrastructure access. If this happens China should overtake South Korea to become the 2nd largest LNG market this year," according to Wood Mackenzie.

To find out more, view Shanks' video discussing this here.