LNG Will Supply A Third of Asia's Energy By 2030 - ExxonMobil
by Asia Pulse Pte Ltd
April 08, 2008
Liquefied natural gas (LNG),
with its relatively low carbon emissions, will supply about one
third of Asia's energy needs by 2030, ExxonMobil says.
ExxonMobil Development Co. vice president of established
areas projects, Alan Hirshberg, told an oil and gas conference
in Perth Tuesday that no fossil fuel will grow faster than
natural gas between now and 2030.
By then, it will account for almost a quarter of global
energy demand, up from 20 percent today, Hirshberg said.
Gas demand for power generation will grow at 2.2 percent
annually, while demand in commercial, residential and
industrial sectors is expected to grow at just under 1.5 percent per year, he said.
Demand in excess of local production will primarily be met
by LNG supply.
By 2030, overall LNG demand will triple by 2030 and the
regional distribution will change significantly.
In 2000, the LNG business was still primarily Asian focused,
much like it had been for the previous 30 years.
But as a result of their increasing dependence on gas
imports, the American and European LNG demand will combine to
surpass Asia by 2015.
He said the world's gas markets were becoming increasingly
linked and inter-regional competition for LNG supply would
So too will competition to bring LNG projects online. He
said there were seven LNG project start ups last year and
another 12 are expected this year.
LNG will make a major contribution to our growing need for
Overall energy demand will grow at 1.3 percent per year
until 2030, he said.
Hirschberg said ExxonMobil and its joint venture partners
for the large Gorgon project offshore Karratha in Western
Australia, Chevron and Shell, were some time away from making a
final investment decision.
The Gorgon parters are understood to be aiming to release
capital expenditure estimates after the current phase of front
end engineering and design (FEED) by mid-2009.
Some observers have estimated the project, which also
includes an ambitious geosequestration component, will cost
about A$20 billion (US$18.3 billion).
Environmental approvals for a third LNG processing 'train'
on the environmentally unique Barrow Island are also expected
to be received by mid next year.
Hirshberg said the project, which will extract a resource
more than 200 kilometers offshore in waters one kilometer deep,
includes a subsea tieback that will be one of the longest and
deepest in the world.
He said Exxon wanted its share of the LNG sold prior to the
final investment decision.
He also touched on the Papua New Guinea (PNG) LNG project,
led by Oil Search Ltd, saying the joint venture partners will
enter the FEED phase as soon as fiscal terms are agreed upon
with the PNG government.
They are currently starting project execution planning for
this US$10 billion (A$10.81 billion) project, which will see 10
trillion cubic feet of gas and 250 million barrels of liquids
extracted and processed through a 6.3 million tonnes per annum
liquefaction facility near Port Morseby.
This is the the largest private-sector investment ever
pursued in PNG and will double its GDP with benefits being
royalties and job creation for landowners, Hirshberg said.
(C) 2008 Asia Pulse Pte Ltd.
PNG LNG Project
ExxonMobil; Oil Search Limited; Santos; Nippon Oil Exploration; AGL; MRDC); Eda Oil
Port Moresby Papua New Guinea