TOKYO, JAPAN – According to an article in LNG World News, the CEO of Australia’s largest independent oil and gas company says that the world liquefied natural gas market could see a supply shortage unless final investment decisions are made on new proposed LNG facilities soon.
“We are meeting at a time of transition for gas,” said Woodside Petroleum CEO Peter Coleman at the Gastech conference in Japan on Tuesday. “There is an abundance of gas globally and it is understandable buyers may not want to look beyond the short term, but we need to look over the crest of the hill and it is clear a supply shortage looms, unless investment decisions are taken soon.”
Coleman pointed out that current conditions aren’t favourable for major investment in new LNG export facilities, largely due to geopolitical and contractual risks, and questions about climate change policies.
However, he added that only a small number of final investment decisions were made last year, with 2017 also shaping up to not see many decisions.
“Now it is time for buyers to engage again, in recognition that this time of abundance will not last,” said Coleman. “Those who move first will get access to the most promising projects, offering the most reliable supplies.”
Coleman said he expects demand for LNG to come from new and emerging markets that will likely import the liquefied gas to floating storage units, adding that imports to countries using floating units have increased from 10 million tonnes per annum in 2012 to nearly 30 million tonnes in 2016. The new demand is coming from countries including Indonesia, Pakistan, Egypt, Argentina, Brazil and Jordan, with Bangladesh, India, the Philippines, Sri Lanka and Vietnam also considering deploying FSRUs.
According to Coleman, emerging markets now account for five percent of global LNG demand, and that number is expected to rise to 27 percent by 2025.
Story courtesy LNG World News: http://www.lngworldnews.com/woodside-ceo-lng-shortage-looms-unless-no-new-investment-decisions-taken/