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Liberalize Asia's LNG markets

Importers need short-term flexible supplies, not 20-year contracts

| Japan
Asia must develop a freer market by reducing long-term contracts.   © Reuters

Asia's liquefied natural gas markets are facing a transformation with rising imports from U.S. shaking up a sector traditionally dominated by supplies from Australia, the Middle East, Russia and Southeast Asia.

With demand growth driven by economic expansion and, increasingly, by environmental concerns about coal (still the biggest contributor to Asia's energy mix), Asian countries require large LNG capacity investments and sophisticated financial structures.

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