Abstract

Natural gas is often considered in the same way as crude oil since both are explored for and produced in similar ways. However, the marketing of natural gas is very different than trading crude oil. As more countries diversify their energy sources, natural gas is becoming a favorable choice. Thus, it is important that the unique nature of the natural gas markets be fully appreciated.

This paper will analyze the evolution of the gas markets in the Asia Pacific region, including countries located in northeast Asia (Japan, Korea, Taiwan), southeast Asia (Malaysia and Thailand), and Oceania. This evolution includes changes in the bargaining position of gas suppliers and buyers, the impact of new entrants into the industry, the influence of competitive fuel products, and the impact of government regulations.

By analyzing how future gas markets may evolve, the potential impact on existing and potential gas Production Sharing Contractors (PSCs) operating in Indonesia can be examined. The analysis will be derived using historical conditions and forecasts by various experts in this growing industry.

Natural Gas can be transported as either a gas using a pipeline, as Liquefied Natural Gas (LNG) using specially designed ships or in a derivative form such as Liquified Petroleum Gas (LPG). An overview of the LNG and pipeline trade and the industry's future projections will be provided. However, this paper does not address other minor forms of gas trade such as LPG.