Deregulation of Asia's gas markets creating LNG supply-demand uncertainties
A report by an influential Japanese think-tank has cast serious doubt on the stability of the future LNG supply-demand balance in Asia. The report, by the Institute of Energy Economics Japan (IEEJ), contends that not only will LNG supply far exceed demand by 2010, but also deregulation of natural gas and electric power utilities in Japan, South Korea, and Taiwan will lead to the emergence of a host of small-lot buyers for whom pricing, and not supply stability, will be paramount.