Algeria is expected to benefit from increasing demand of liquid produced gas in Asian countries.
During the recently Asia LP Gas conference held in Tokyo, Japan last March, industry representatives warned Korea and Japan that they must diversify their liquid produced gas supply sources who depend heavily on the Gulf, the North Africa Monitor (NAM) said.
It added that both countries are major markets and Algeria has been cited as a source of liquid produced gas to be considered by Asia's largest economies.
Specialists say that Japan for instance needs to secure other sources of supply as it is facing instability in the future partly due to fast rising demand and a less available supplies, added (NAM).
Other reasons for seeking new sources include the recent increase of propane and butane prices from Saudi Arabia. Indeed Japan and Korea are heavily dependant from Saudi Arabia and other Middle Easter suppliers and this situation is making industry players in Asia very nervous.
"Worldwide demand for gas is expected to increase by a rate of 35% over the next decade. Asia would consume some 28% of the demand due to the rise in demand from the residential and commercial sectors. Annual growth rate in Asia over the next 10 years is predicted to average 8.2%."
Demand in South Korea alone is expected to rise by 61% over the next 10 years.
In contrast, (NAM) noted, that supply will not grow at the same rate as demand and will be much slower.
"Specialists expect exports from the Middle East to decline. This is a trend already happening."
Algeria is undoubtedly poised to win more market share in Asia. Algerian energy minister has toured Asia to discuss market opportunities for Algerian energy in Asia and investment opportunities in Algeria for Asian corporations.
Other European and American companies are continuing to invest in Algeria.
"The latest has been the announcement of BP-Amoco to commit nearly $2 billion in developing the In-Salah gas field." – Alabawaba.com
© 2000 Al Bawaba (www.albawaba.com)
