Liquefied Natural Gas (LNG) could become the fuel of choice for power generation by 2030 in the face of the world's growing energy needs, experts told a regional conference today.

"Demand for LNG has increased five-fold over the last 20 years; we expect it to increase five times again by 2030," said Ann Pickard, Shell Gas and Power's director of global businesses and strategy.

"Gas could become the preferred fuel of choice for power generation in the 21st century. We expect it to play an increased role in the world's future energy needs," she told the two-day Asia Oil and Gas Conference here.

"We do think gas will overtake oil in 2025," Pickard told AFP later. "It is economic, there is a big environmental impact, a lot lower carbon dioxide.

"As countries try to meet the Kyoto protocol, they're going to be driving towards gas firepower. LNG and gas in general are really growing rapidly," she said.

"In order to meet the demand that we expect in the next 10 years, we believe that the industry needs to invest at least US$80 billion," she said.

China, India, the US and Mexico are potential growth markets while traditional markets South Korea, Taiwan and Japan were also expected to see continued strong growth, she said. For the east coast of North America, she expects growth from 10 to 50 million tonnes by 2030.

Outpacing production

David Roberts, BG Group's executive vice-president and managing director for Asia and the Middle East, also said that LNG would play an "increasingly important role" by 2030 as global demand would be strong.

He added that gas was "abundant", not "resource-constrained" and that "gas discoveries have outpaced production."

The benefits of gas included higher efficiency, low capital costs and cleaner operation, he told the conference.

Gas is the fastest-growing primary energy source, said Bill Colton, Exxon-Mobil Gas and Power Marketing Company's vice-president for Asia Pacific. - AFP