Japanese oil and gas group Inpex sees LNG supply shortfall in Asia in 2035

Core Viewpoint - Inpex, Japan's largest oil and gas producer, anticipates a significant increase in global liquefied natural gas (LNG) demand, projecting a growth of 75% to approximately 700 million metric tonnes annually by 2035, which may lead to a supply shortfall in the Asia-Pacific region [1] Company Performance - Inpex reported a 7.8% decline in net profit to 393.8 billion yen ($2.6 billion) for the year ending December, attributed to weaker oil prices [1] - The company forecasts a further 16.2% decrease in profit for the current year, estimating it at 330 billion yen due to expected persistently low oil prices [1] Dividend and Investment Strategy - Despite the anticipated profit decline, Inpex plans to increase its dividend to 108 yen per share from 100 yen in 2025, reflecting confidence in future earnings [1] - The company is set to invest 850 billion yen in growth areas, a significant increase from 386.9 billion yen in 2025, with 809 billion yen allocated to oil and gas [1] - Of the total investment, 500 billion yen is earmarked for projects directly linked to future revenue generation, including the development of the Abadi project and new energy asset acquisitions [1] Supply and Demand Outlook - Inpex forecasts a supply shortfall of 231 million tonnes in the Pacific coastal region by 2035, while predicting oversupply of 137 million tonnes in the Atlantic coastal region and 56 million tonnes in the Indian Ocean coastal region [1] - The increase in global LNG demand is primarily driven by the needs of the Asia-Oceania region, which is expected to rise from the current level of 400 million tonnes per year [1]