LNG to meet a fifth of OECD's gas supply by 2010-IEA

By Staff
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LONDON, June 8 (Reuters) Liquefied natural gas (LNG) will make up a fifth of the OECD's gas supply needs by 2010, with Europe and North America growing more reliant on imports from poorer countries, the International Energy Agency said on Thursday.

Natural gas currently supplies 21 percent of global energy needs and although the pace of demand growth will slow in the second half of the decade, rising power generation will still spur demand considerably, the Paris-based IEA said.

Much of the new power generation growth will be served by rising LNG supply, the IEA said in its 2006 Natural Gas Market Review.

It said that by 2010, LNG would account for 30 percent of gas imports to the Organisation for Economic Cooperation and Development, with the liquefied fuel sourced from poorer, non-OECD countries.

Dependence on imports from non-OECD countries to 2010 will vary between regions, from less than 10 percent in North America to 48 percent in Europe and 63 percent in Asia-Pacific.

''In Japan and Korea, LNG will retain its central role, but for the North American and European regions, LNG will become an essential supply source at the margin,'' the IEA said.

It said LNG would supply a larger slice of the North American market through the construction of new import terminals.

The IEA added that by 2010 the LNG market in the Atlantic Basin would grow to at least equal the size of the Pacific Basin.

Globally, it said LNG would provide some 40 percent of the world's gas supply growth by 2010. It currently supplies less than 7 percent of global gas consumption, the IEA said.

The agency said that though investment in the gas sector was looking seriously short of what was required, funding for LNG production, transport and related infrastructure remained on target.

REUTERS CS VV1745

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