Owning cars and getting into the latest and greatest in technology, homewares and personal effects is quickly catching on with Asia’s rising middle class. China and India are at the epicentre of where it’s all happening. As the need for energy grows, these countries are looking for alternative energy sources with lower emissions, and LNG appears to be the game changer. So, where does the future lie for these two energy-consuming giants that are driving the region’s LNG growth?
China is working towards its Blue Sky initiative, transitioning from coal to a range of low-carbon options, such as LNG, for its energy needs. ExxonMobil is a major exporter of LNG to China and sources the product from countries like PNG and Australia. China’s efforts in environmental protection have markedly reduced the smog and pollution that has plagued Chinese skies for years. Natural gas, being a cleaner energy source, is definitely one of the key contributors.
There are long-term plans to facilitate the low-carbon shift. ExxonMobil is also a part of scaling LNG infrastructure in China, with the company signing an agreement with the Guangdong province for the potential construction of an LNG receiving terminal.
India too is set to embrace a similar path to increase its reliance on natural gas from 6 percent to 15 percent by 2030. The residential, commercial and industrial sectors will be the drivers for India’s LNG demand over the next few years.
The challenge is getting its infrastructure in place to cope with the increasing demand for LNG. There are currently four receiving terminals and plans to build 11 more. In its move towards a gas-based economy, India has embarked on doubling the pipeline network and establishing various regional gas grids. The government’s target is that 70 percent of the population should have access to piped natural gas within the next three years. ExxonMobil has been the pioneer in developing the LNG market in India, with gas imports from Qatar and Australia.
More cars and new technologies will increase energy needs, but the driver for both governments is the promise of blue skies and cleaner air for all.
Explore more about ExxonMobil and LNG here.