Forecasts indicate LNG demand will continue to grow requiring fresh investment in new developments but these do not necessarily need to be on the same model as recent projects, a trio of energy giant bosses said.
Speaking at the start of the LNG 18 meeting in Perth Shell chief executive Ben van Beurden said: “We are going through a very significant change in the industry.”
Market conditions are challenging, Van Beurden said demand growth is weaker than expected and there will be over supply in the near term.
But he added: “The industry needs to keep investing to keep up with growing demand.”
Chevron chief executive John Watson insisted that “LNG is not just a transition fuel.”
Watson said natural gas is forecast to expand by 35% in next 35 years which will require a doubling of LNG production globally in that time span.
He said that notwithstanding the current over supply in the LNG industry, given these demand forecasts: “We will likely need a project the size of Gorgon (LNG) every year for the next 20 years.”
“We are here for the long haul because the world needs our product,” he added.
But Woodside Energy chief executive and managing director Peter Coleman said the LNG industry must learn from its past to guarantee its future to ensure its long term sustainability.
“Investments need to be smarter, need to be phased and don’t necessarily need to be bigger,” Coleman said.
