Large-Scale LNG Projects Needed to Meet Global Natural Gas DemandCommercialization and Execution of Complex Projects Key Determinants of Success
DOHA, Qatar--(BUSINESS WIRE)--Large-scale liquefied natural gas (LNG) projects will be necessary to meet increasing global demand for natural gas, Tom Walters, president of ExxonMobil Gas and Power Marketing Company, said Dec. 8 at a panel presentation at the International Petroleum Technology Conference (IPTC) in Doha.
Walters joined a group of industry leaders in a panel entitled: "The Global Gas Outlook: New Gas Chains." Presenting information from ExxonMobil's 2009 Energy Outlook, Walters noted that despite the current economic environment, economic progress will be a key driver of energy demand over the long term. "We expect global energy demand to grow from about 230 million barrels a day of oil equivalent (MBDOE) in 2005 to over 300 MBDOE by 2030 - an increase of almost 35 percent," he said.
"The world's growing demand for gas will challenge our industry to deliver projects on a scale that was barely considered even a decade ago," said Walters. "The ability to conceptualize, commercialize and execute large-scale, multi-billion dollar projects has become an increasingly important differentiator, which will remain over the coming decades."
With gas demand expected to experience strong growth over the next 20 years, resource holders must find ways of developing supplies to meet this growth. LNG offers one flexible solution, but Walters noted that the economics of LNG projects require execution on a much larger scale than traditional local supplies. "As we have seen with the new trains that we have been starting up with our partners in Qatar, the development of LNG requires large-scale projects. This creates challenges for our industry because with scale comes complexity. Maximizing the return of large-scale projects requires selecting the right design concept, developing effective marketing plans and executing the project to deliver it at the lowest cost," he said.
Over the next 20 years, natural gas will play an increasingly important role in the global energy mix, particularly due to its abundance, versatility, and economic advantages as a fuel offering lower carbon emissions and improved efficiency for power generation.
Recognizing that all types of energy are required to meet demand, Walters said: "Not only will energy demand be much larger in 2030 than it is today, the mix of fuels used to meet that demand will change as well. Gas in particular will play an increasingly important role in meeting the world's future energy needs, growing at 1.8 percent over the 2005 to 2030 period."
ExxonMobil Announces Approval on PNG LNG Project IRVING, Texas--(BUSINESS WIRE)-- ExxonMobil Corp. (NYSE:XOM) announced Dec. 7 that the co-venturers have agreed to proceed with the development of the Papua New Guinea (PNG) liquefied natural gas (LNG) project, pending completion of sales and purchase agreements with LNG buyers and finalization of financing arrangements with lenders. At a ceremony at the PNG National Parliament House in Port Moresby, Peter Graham, managing director of Esso Highlands Limited, an ExxonMobil subsidiary, announced that pending completion of these sales and financing arrangements, significant project activity will commence in 2010. Esso Highlands is the operator of the project.
"With global demand for LNG forecast to nearly triple by 2030, the PNG LNG Project will be an important supply source to meet this future demand, particularly for the economies in the fast growing Asia Pacific region," said Neil Duffin, president of ExxonMobil Development Company. "The supply of cleaner-burning natural gas will also be critical in helping reduce global emissions. The co-venturer approval of the PNG LNG Project is a significant milestone. We look forward to applying our world-class execution capabilities and continuing to work together cooperatively with the PNG government to bring this resource to production."
PNG Prime Minister Sir Michael Somare presided over the announcement ceremony, attended by PNG government ministers and governors. Somare said, "Project operator ExxonMobil and our other private sector development partners have shown significant confidence in our country. Cooperation between the public and private sectors will create value for the Papua New Guinea society as a whole and will grow our economy in the future."
The PNG LNG Project is an integrated development that includes gas production and processing facilities, onshore and offshore pipelines and liquefaction facilities with capacity of 6.6 million tons per year. Participating interests include affiliates of ExxonMobil (including Esso Highlands Limited as operator, 33.2 percent), Oil Search Limited (29.0 percent), Independent Public Business Corporation (PNG Government, 16.6 percent), Santos Limited (13.5 percent), Nippon Oil Exploration (4.7 percent), Mineral Resources Development Company (PNG landowners, 2.8 percent) and Petromin PNG Holdings Limited (0.2 percent).
ExxonMobil is currently participating in LNG production in Qatar and Indonesia with a combined gross capacity of over 50 million tons per year, supplying markets in Asia, Europe and North America. The company is also participating in the development of LNG in Australia. Global LNG demand is expected to grow about 4 percent per year through 2030, at which time LNG is expected to meet about 15 percent of the world's demand for natural gas.
CAUTIONARY STATEMENT: Statements in this release relating to future plans, expectations, events or conditions are forward-looking statements. Actual results, including project plans, the impact of new technologies, and demand growth, could differ materially due to changes in long-term oil or gas prices or other market conditions affecting the oil and gas industry; political events or changes; actions of competitors; timely completion of development projects; the outcome of commercial negotiations; and other factors discussed under the heading "Factors Affecting Future Results" on the "Investors" section of our website (www.exxonmobil.com) and in Item 1A of ExxonMobil's most recent 10-K. References to volumes of natural gas include amounts that are not yet classified as proved reserves but that we believe will ultimately be produced.
ExxonMobil, the largest publicly traded international oil and gas company, uses technology and innovation to help meet the world's growing energy needs. ExxonMobil holds an industry-leading inventory of resources, is the largest refiner and marketer of petroleum products, and its chemical company is one of the largest in the world. For more information, visit www.exxonmobil.com.
Follow ExxonMobil on Twitter at www.twitter.com/exxonmobil.
More Latest News »