Asia’s energy landscape in 2018

The dynamics of Asia’s energy landscape is changing fast as prices – from crude oil to LNG – are staging a sharp recovery. What kind of pressure Asian importers will face in 2018? Will there be demand destruction? Are we going to see a change in supply patterns?

 

The S&P Global Platts Asian oil news and analysis team has put together a series of outlook stories that delves deeper into what’s in store for the region’s oil and gas sector in 2018.

 

OIL

 

China’s product exports set to rise as Beijing eases restrictions
China’s oil product exports are expected to grow at a healthy rate in 2018, after a modest rise in 2017, as Beijing relaxes restrictions amid strong lobbying by state-owned oil companies and a forecast increase in refining capacity of around 1 million b/d this year.
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China’s LPG demand to grow, albeit at a slower pace
China’s LPG demand is expected to continue its positive growth momentum in 2018 but the growth rate is expected to slow because of policy uncertainties that could cast a shadow over the petrochemical sector’s demand outlook, analysts and market sources said.
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Asia naphtha set for slightly stronger year; cleaner gasoline specs eyed
Asia’s gasoline market will be supported by continued buying in the Middle East and growing demand in South Asia but projections of heavy Chinese exports may put a ceiling on the uptrend, sources said.
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After a year of pain, India’s oil demand set to gain
After a year of faltering growth, India’s oil demand is set to stage a recovery in 2018 as New Delhi aims to boost infrastructure spending and step up efforts to inject liquidity into its banking sector, while the economy starts to adjust to a series of economic policy reforms introduced last year.
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Australia, Iran could set condensate price trend
Australia and Iran could play a leading role in shaping new price trends in the Asia Pacific ultra-light crude market in 2018 as the Oceania producer’s new condensate stream is expected to spur intense competition among various suppliers around the region, while an expected drop in Iranian exports next year may ignite Asia’s desire to buy more arbitrage barrels.
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Asian sweet crude market may run out of Indonesian grades
Low sulfur Indonesian crude oil could become a rare commodity in the Asian spot market next year as Southeast Asia’s biggest energy consumer is set to retrieve various domestic field operatorships from foreign upstream companies, signaling Jakarta’s desire to digest more local oil and minimize crude imports.
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South Korea’s 2018 Iranian condensate imports likely to slide
Australia and Iran could play a leading role in shaping new price trends in the Asia Pacific ultra-light crude market in 2018 as the Oceania producer’s new condensate stream is expected to spur intense competition among various suppliers around the region, while an expected drop in Iranian exports next year may ignite Asia’s desire to buy more arbitrage barrels.
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NATURAL GAS, LNG

 

Asia LNG faces headwinds on rising global supply, falling legacy consumption
After a winter of record high LNG prices, the Asian markets are bracing again for another year of structural oversupply, as the strength of China and emerging Asian markets seems insufficient to bridge the gap between growing global supplies and declining consumption among legacy Asian buyers.
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South Korea’s LNG demand unlikely to rebound in 2018
South Korea’s LNG demand is unlikely to rebound in 2018 because the new government has softened its stance against the country’s heavy reliance on coal and nuclear for electric power generation.
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Platts