Big three poised to redraw gas map
Paris in June may seem a world away from Perth in April.
As world gas leaders such as Chevron chief executive John Watson and his ExxonMobil and Royal Dutch Shell counterparts Rex Tillerson and Ben van Beurden descend on Paris for this week’s World Gas Conference 2015, front and centre of the 4000 delegates from 100 countries will be the challenge of operating in a tough environment of weak commodity prices and investors demanding heightened fiscal discipline and bigger payouts.
It is a scenario well understood by the trio of supermajors as they scramble to complete construction of the $US54 billion ($70.7 billion) Gorgon LNG undertaking in the Pilbara to achieve first cargoes of liquefied fuel before the end of the year.
By the time the LNG18 conference, which rivals the triennial WGC for global size and significance, arrives in Perth next April, the Gorgon partners want the focus to shift to the “redrawing (of) the global map of gas” prompted by Australia’s $US200 billion gas development boom over the past decade.
It should set Australia on the path to annual output of 86 million tonnes of LNG by about 2017, overtaking Qatar as the world’s biggest supplier. Gorgon alone will contribute 15.6mtpa while Shell’s Prelude project, the world’s first big-scale floating LNG operation, will produce 3.6mtpa and Inpex’s $US34 billion Ichthys, Japan’s first operated LNG asset, 8.4mtpa.
All three will spark conversation at WGC because they cover the always-important topics of scale, technology and security of supply.
The oil and gas industry has a history of chasing titles and records, though the sharp downturn in commodity prices has forced the quest for bragging rights to be firmly parked up.
Not surprisingly, WGC will talk up gas as “a core pillar for a sustainable society”, citing growing energy demand and the role of gas as a transition fuel away from coal.
This week’s Paris conference, under the theme of “growing together towards a friendly planet”, will also hear from Qatargas chief executive Khalid Bin Khalifa Al Thani, hoping for a rare perspective from the Middle East about its view of the changing LNG supply landscape, both in terms of Australia’s ascension as well as the flood of proponents who want to export liquefied cargoes from America’s shale fields.
Woodside Petroleum managing director Peter Coleman, who is establishing a foothold in America to complement the Perth giant’s status as Australia’s LNG leader, will fly the local flag as a keynote speaker, to be joined by Origin Energy chief executive Grant King.
Santos executives will also be in Paris, including for meetings with Bonaparte LNG joint venture partner ENGIE (formerly GDF Suez).
The organising committee of LNG18, led by Origin’s Mr King, will be hoping some of the industry-wide issues are addressed in favour of more positive sentiment by the time delegates head to Perth in April.
Organisers expect to attract 5000 delegates, trade visitors and exhibitors from 60 countries.
Chevron’s Mr Watson, Qatargas’ Sheikh Al Thani, Shell’s Mr van Beurden, ConocoPhillips chief executive Ryan Lance, BP boss Bob Dudley and Inpex president Toshiaki Kitamura are confirmed headline speakers.
