The Chevron-operated Gorgon and Wheatstone LNG projects in Australia will add more than 24 million tpa of LNG capacity to the Asia-Pacific region, Melody Meyer, President of Chevron Asia Pacific Exploration & Production said at the Pacific Energy Summit in Seoul.
Most of this LNG capacity is already under contract to Asian customers, Meyer added.
In her speech titled ‘Taming the Asia-Pacific Energy Dragon Together’, Meyer discussed the importance of Australian LNG in the Asia-Pacific market.
Asia’s energy sector
“The International Energy Agency estimates that Asia’s energy sector will require more than US$ 700 billion in capital investment through 2035, with most of that needed for gas exploration, production, LNG infrastructure and pipelines. The IEA also says China is entering a ‘golden age’ of gas, with consumption forecast to double within five years. And even with domestic gas production expected to grow 65%, China will need LNG to meet a lot of its new gas demand.
“Looking more broadly, the IEA also believes that overall Asian LNG demand will double in the next 10 years. However, when we add up the new LNG capacity we now have under construction, we’re looking at a potential supply shortfall in 2025 of around 100 million tons per year. That’s the equivalent of seven projects the size of our huge Gorgon development in Australia.”
Chevron and its partners are investing a total of US$ 80 billion to develop the Gorgon and Wheatstone LNG projects in Australia. The Gorgon project is well on its way to completion, having received the last of the 21 modules for the first train of Gorgon's LNG processing facility to the project site on Barrow Island at the end of June.
First shipments of LNG from the Gorgon project are scheduled in 2015.
Written by Katie Woodward
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/02072014/chevron_considers_gorgon_lng_and_demand_in_asia_903/