Fitch Ratings expects APAC liquefied natural gas (LNG) demand to continue rising gradually, driven by the region’s economic recovery and new re-gasification facilities coming online. Medium-term demand will be further supported by the south and south-east Asian markets, with domestic production not keeping up with demand growth. The demand recovery is likely to support the credit profiles of Australian LNG producers despite their large investment plans.

The US, the main contributor to the increased supply in 2023, will firm up its market positions over the next few years when around 25 million tonnes per annum of new LNG capacities come online. New liquefaction capacities are also becoming operational in Canada and Mexico, making more LNG available to the APAC region.
Source: Fitch Ratings