Russian federation - East Asia liquefied natural gas trade patterns and regional energy security

Arbeitspapier

East Asia remained the biggest market for liquefied natural gas (LNG) in 2018. The Russian Federation has a clear vision to develop its East Asia LNG projects to provide a bigger share of Asian LNG imports. This paper models Russian Federation - East Asia L NG trade patterns via the gravity trade theory, which is shown to fit well with energy trade patterns. The findings reveal that a 1% increase in population growth in the People's Republic of China, Japan, and the Republic of Korea increases Russian Federation LNG exports by nearly 3.43%, and economic growth by 6.16%, while any increase in geographical distance decelerates LNG exports to the selected East Asian economies by nearly 7.3%. This means that the close proximity of the Russian Federation to East Asia is an advantage for its LNG exports. Furthermore, the West's sanctions against the Russian Federation are a positive influencing factor on the latter's LNG export volume to East Asia. Our findings recommended some policies such as construction of a gas trading hub in Asia, increasing regional pricing power, and energy import diversification and shorter distances between the Russian Federation (exporter) and East Asia (importer) to improve energy security in this region.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ADBI Working Paper Series ; No. 965

Classification and Topics

• Classification: Wirtschaft ; Nonrenewable Resources and Conservation: Issues in International Trade ; Regional Economic Activity: Growth, Development, Environmental Issues, and Changes ; Empirical Studies of Trade
• Subject: gravity trade modeling ; LNG trade ; energy security ; Russian Federation ; East Asia

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Rasoulinezhad, Ehsan ; Taghizadeh-Hesary, Farhad ; Yoshino, Naoyuki ; Sarker, Tapan
• Event: Veröffentlichung
• (who): Asian Development Bank Institute (ADBI)
• (where): Tokyo
• (when): 2019

Further information

• Handle: http://hdl.handle.net/10419/222732
• Last update: 10.03.2025, 11:43 AM CET