LNG's Evolution: Environmental concern to stimulate Asia-Pacific LNG use

Asian economies have recovered from a severe downturn in 1998 and em barked on self-sustained growth that has resulted in continuing, substantial growth in energy demand. This demand has again raised concerns about energy security in the re gion. Specifically, dependence on oil imports and environmental concerns over coal and nuclear power have created a new atmosphere for strong LNG demand.Prospects for increasing LNG demand depend heavily on the contract structure. With deregulation and privatization picking up momentum in the Asia-Pacific region, however, most utilities are wary of long-term, take-or-pay contracts. Thus, while LNG demand could be or should be larger, the contract struc...

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