MOSCOW, November 6. /TASS/. Asia, which accounts for 69% of global consumption of liquefied natural gas (LNG), could become the primary alternative destination once EU countries cease purchases of Russian LNG starting 2027, according to the analytical report by the PORA expert center dubbed "International Cooperation in Developing the Arctic Zone of the Russian Federation 2022-2025" seen by TASS.

"The target market is Asia, which is home to the world’s largest LNG consumers, China and India," the report said.

According to data presented in the report, LNG imports to Asia reached 282 mln tons in 2024, an increase of 21 mln tons, or 8%, compared to the previous year.

That said, redirecting supplies should take into account logistical nuances. The Northern Sea Route (NSR), which serves as the shortest path for delivering Arctic LNG to Asia, is navigable only during the summer and autumn months. Year-round delivery via the southern route, through the Suez Canal or around the Cape of Good Hope, can take twice as long.

The authors mentioned Japan, South Korea, China, and Taiwan as target markets for shipments via the Northern Sea Route. At the same time, experts believe transporting LNG to Southeast Asia is on the verge of profitability and could only become attractive if the associated costs are reduced.

Competition from projects on the Pacific coast of North America, which are also primarily oriented toward the Asian market, will be an additional factor. The low cost of gas production on the Yamal and Gydan peninsulas compared to that of competitors remains one of the advantages of Russian Arctic LNG, the authors noted. However, redirecting supplies will require taking into account not only demand in Asian markets but also fleet availability, route distances, and transportation costs.