Emerging Asian markets at highest risk of gas-fired plant cancellations

LNG Industry:

Emerging markets such as Vietnam, Pakistan, and Bangladesh that are turning to LNG as a source of power are likely to be hit by higher and more volatile prices going forward, according to a new briefing note from the Institute for Energy Economics and Financial Analysis (IEEFA).

Author of the note LNG/gas analyst Bruce Robertson says new gas-fired power plants and LNG import facilities totalling over US$50 billion are at high risk of cancellation as gas-fired electricity becomes unaffordable in emerging markets.

“Asian LNG spot prices have soared to a new high on the back of stronger than expected seasonal demand for heating as freezing weather grips large parts of the northern hemisphere,” says Robertson. 

[Lydia Woellwarth]

More: IEEFA reports on status of LNG projects in emerging markets