Inpex, a Japanese oil and gas company, sees a shortage of LNG in Asia by 2035

Inpex, Japan’s largest oil and 'gas producer, anticipates that global demand for LNG will grow by 75%, to 700 million metric tons annually, in 2035. This could lead to a shortage of LNG along the Pacific coast, including Asia.

Inpex, who runs the Ichthys LNG Project in Australia and develops Abadi LNG in Indonesia, said that it expects global LNG consumption to rise from its current 400 million tons annually, driven by Asia-Oceania?region needs, in its results presentation released on Thursday.

The report forecasts a 231-million-ton annual shortage in the Pacific Coast region by 2035. It also expects an oversupply in the Atlantic and Indian Ocean coast regions of 137 and 56 millions tonnes, respectively.

Inpex reported that oil prices were lower in the past year, resulting in a 7.8% drop in its net profit. It expects to see a 16.2% drop in profits this year, to 330 billion Japanese yen. Lower oil prices are expected.

Daisuke Yamada said at a press event that despite the fact that profits were down this year, they increased dividends and dramatically raised growth investments.

This shows that we have a reasonable level of confidence in the future performance of our earnings."

The company projected a dividend per share of 108 yen, compared to 100 yen by 2025. It also forecasted investment in growth areas at 850 billion yen, an increase of 386.9 billion in 2025.

Yamada stated that 809 billion yen of the total will be allocated for oil and gas. 500 billion yen is earmarked to invest in investments directly related to future revenue generation, such as the development of the Abadi Project, exploration, facility extensions, and the acquisition of new energy assets.

He said: "We plan to make significant investments in this year, while oil prices are relatively stable. This will secure the cash flow required during this interim period." ($1 = 153.000 yen)

(source: Reuters)