The Global liquefied natural gas (LNG) industry faces continued disruption, the World Energy Conference in Daegu heard today. The American shale gas revolution, disproportionate shale gas prices in North America, Europe and Asia, and China’s developing shale gas market, combine to render the global LNG market in a state of disruption and uncertainty.
LNG experts from the US, Australia, Indonesia and Japan considered the new dynamics of Asian LNG markets in a panel discussion mediated by Dr. Tatiana Mitrova, head of the oil and gas department at the Energy Research Institute of the Russian Academy of Sciences.The speakers included:
- Yenni Andayani, Senior Vice President of Gas & Power, Pertamina, Indonesia.
- Peter Coleman, CEO & Managing Director of Woodside Energy, Australia.
- Richard Guerrant, Global Vice President of LMNG, ExxonMobil, USA.
- Jay Khosia, Assistant Deputy Minister of Natural Resources, Canada.
- Shigeru Muraki, Executive Vice President, Tokyo Gas, Japan.
- Don Wallette, Executive Vice President, ConocoPhillips, USA.
Asia: 60% of global LNG imports
The panel observed that LNG imports by Asian countries are responsible for 60% of the global LNG trade and essentially drive the global LNG market. Dr. Mitrova noted that: “In the last couple of years there were some shifts on the demand side. First of all, the Fukushima catastrophe has pushed up energy demand in Japan. At the same time there have been environmental concerns and demand growth in China and Southeast Asia.”
America: from demand to supply
The US potentially has a 100-year supply of natural gas, which would convert the nation from a demand centre to a supplier, said Mr. Wallette. As Asian demand for LNG increases, North America is becoming another source for the Asian LNG market. Countries such as China, which has estimated shale reserves in the league of 1115 trillion ft3, are looking for ways to imitate that success.
Revolution or evolution?
The panel discussed whether current events represent a ‘revolution’ or are simply a part of the market’s natural ‘evolution’, and whether industry actors would focus on short-term projects or long-term planning.
Adapted from press release by Ted Monroe
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/14102013/global_lng_markets_to_be_disrupted_by_shale_gas_industry/