JAKARTA (RambuEnergy.com) – The rising demand for LNG in Asia on the back of steady economic growth and growing population could trigger shortfall in LNG supply in early 2020s, according to a top official of Australian-based LNG producer Woodside Energy.
“A global LNG shortfall is looming in the early 2020s amidst rising demand from Asia, driven by a growing world population, and demand for more energy and cleaner energy,” Meg O’Neill, Chief Operations Officer Woodside Energy Ltd said at the AOG Conference in Perth, Australia, today (March 13).
Indeed, he said, there is a global race to take advantage of this market shift, with LNG projects recently sanctioned or awaiting FID in the USA, Canada, Russia, Qatar, Nigeria and Mozambique.
Projects that can contain costs by bringing new resources through existing and proven facilities will have a head start.
“That’s what we’re trying to do on the Burrup Hub, building on our strengths to capture an advantage in a very competitive global market. And that’s why we have set ambitious timelines, so we can deliver LNG right when it is needed,” he said.
The company, he said, is “excited” about this opportunity.
“We are energised and think it is achievable. A lot is riding on this, for this state and this nation. The stark fact is that the alternative to the Burrup Hub is the decline in our operations in Western Australia and our local investment, with all the flow-on effects that would have for jobs and the economy,” O’Neil said.
Over the past year, Woodside has built momentum and it wants to see that sense of urgency mirrored in others because it’s going to take a big effort to capture this opportunity.
“We cannot do it alone. Western Australia faces stiff global competition in the race to supply the world’s energy needs. We have access here in this state to the resources, the facilities and the expertise to get ahead in that global race. But we are going to have to work hard, and fast, and smart. This state is rich in resources – but unlocking the value of those resources is not straightforward,” he said.
This requires the right commercial framework and the right timing and market signals globally. It requires experience, vision and discipline – and massive investment. It also requires policy stability and buy-in from a whole range of stakeholders – from the authorities who will be conducting the appropriate and rigorous checks on the company’s plans through to the various components of the supply chain who we will be engaging on tasks big and small.
“We need to pull together to realise this opportunity,” he added.
Woodside is currently developing the Burrup Hub, which involves the proposed development of some 20 to 25 trillion cubic feet (Tcf) of gross (100%) dry gas resources from Scarborough, Browse and Pluto, relying on our proven liquefied natural gas (LNG) facilities – Pluto LNG and the North West Shelf Project.
The company aims to link these facilities to create the Burrup Hub – a regional LNG production centre on the Burrup Peninsula in Western Australia that will supply domestic and export markets for decades to come. The company expects this hub could also provide the infrastructure to process other third-party resources in the future.