A Pan-Asian natural gas pipeline would be more efficient in meeting Asia’s future energy needs than Liquid Natural Gas.
In coming years, Asia is slated to spend hundreds of billions of dollars on Liquid Natural Gas infrastructure. The aim will be to ship compressed gas from Australia and Southeast Asia to China, Japan and South Korea.
This LNG infrastructure will be short-lived, greenhouse gas-intensive and technologically inflexible. An interconected regional gas pipeline network, by contrast, would last a century or more and carry different fuels over time.
Grenatec evaluates these economics in its latest report: “Asia’s Natural Gas Revolution:Is A Pan-Asian Gas Pipeline The Answer?”
In the report, Grenatec argues Liquid Natural Gas represents a major technological ‘wrong turn’ for Asia if economic efficiency, greenhouse gas mitigation, inclusive wealth creation and innovative energy market development are priorities.
One sign of LNG’s worsening economics are ongoing cost rises of 10% or more per year for new LNG projects in Asia, particularly in Australia. These cost rises are multiples of the regional inflation rate.
In its report, Grenatec outlines an alternative paradigm of a longer-lived, more flexible regional natural gas infrastructure costing the same as the current generation of planned LNG projects in Australia.
The advantages compound when electricity and data are added to the networ since a regional gas pipeline would create the pathway for high-capacity power lines and fiber optic cables to be laid alongside.
That, in turn, would ceate a Pan-Asian Energy Infrastructure serving a market of two billion people representing a quarter of global GDP. It would provide Asia with a dynamic energy market where fuel-switching, innovation and price competition could flourish