Asia Continues to Face Economic and Geopolitical Issues
There are a number of market factors affecting demand potential out of Asia. Most notably is the lack of activity of Australia. Contributors include, but are not limited to risk associated with local natural gas prices as the large gas fields require stable and agreeable natural gas prices to be commercial. Also, many of these fields are considering utilizing FLNG technology but operators seem to be waiting for operational results from Shell’s Prelude once it comes on stream. China has also been lack luster with respect to expected activity from the area. Political concerns in Indonesia have already created project delays. Increased scrutiny of these issues has led to an overall 15 percent reduction of expected SPU demand from the region and some projects were pushed outside the current forecast period.