Sustainable economic growth and export diversification potential for Asian LNG-exporting countries: LNG–petrochemical nexus development using product space model

Syed Fahad Ali Shah, Muhammad Abdul Qyyum, Kinza Qadeer and Moonyong Lee

Energy, 2021, vol. 236, issue C

Abstract: Asian liquefied natural gas (LNG)-exporting countries have large natural gas reserves with a combined LNG export share value of 58% globally. Nevertheless, their global share in petrochemical exports is merely 2.2%. Among the selected countries, Indonesia and Malaysia have exploited 39% and 17% of the products in their petrochemical sectors, but the UAE, Myanmar, Oman, Qatar, and Brunei have exploited only 2%–10%. The significant potential for these countries with regard to exploiting these petrochemical products to scale up their export diversification, in turn leads to sustainable economic growth. The primary reason for their low global share is insufficient knowledge concerning their production capacity, as well as the sector's feasibility and potential with respect to their capabilities. This study thoroughly investigates the export diversification potential and opportunities for Asian LNG-exporting countries by exploring the nexus between LNG and petrochemicals using a product space model (PSM). The results indicate that production of unexploited petrochemicals is imminent in Indonesia and Malaysia, while the UAE, Myanmar, and Oman have moderate opportunities for exploration. These findings can assist policymakers in formulating realistic policies in accordance with their country's capabilities. It will also assist entrepreneurs in identifying potential sectors for establishing new enterprises.

Keywords: Liquefied natural gas; Petrochemicals; Product space model; Economic growth; Efficient frontier; Policy implications (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0360544221015826
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:236:y:2021:i:c:s0360544221015826

DOI: 10.1016/j.energy.2021.121334

Access Statistics for this article

Energy is currently edited by Henrik Lund and Mark J. Kaiser

More articles in Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().