More want LNG

By MALUM NALU
THE future prospects of the liquefied natural gas are promising, with the energy source expected to be the fastest growing in the world, according to ExxonMobil PNG Ltd.
Managing director Andrew Barry told the 2017 Leaders’ Summit hosted by Prime Minister Peter O’Neill in Port Moresby yesterday that the country stood to benefit from the hike in global energy demand.
“The future of LNG is bright. ExxonMobil projects that increase in population and growing trade, and development, will increase global energy demand across the world by about 30 per cent between now and the year 2040,” he said.
“Put that in context, it is more than the combined energy demands of Russia, India, all of Africa, Latin America, Middle East and Papua New Guinea.
“LNG will be the fastest growing major energy source with global demand to rise by close to 45 per cent from 2015 onwards.
“Gas offers an abundant source of energy that is reliable and flexible, and because it is a cleaner fuel than coal, natural gas can contribute to cleaner air and reduced greenhouse gas emissions.”
But Barry warned that while the country’s LNG resources were vast, the cost of development was high because of the “terrain and the remoteness”. “To drill just one exploration well can cost more than K300 million,” he said.
“ExxonMobil, with our partners, have invested more than K2 billion in exploration alone since 2007.
“To develop these resources, global LNG markets are required.
“And PNG will need to compete with countries like Australia, United States, Russia, Africa and others for the investment dollars.
“LNG exports from PNG will provide the backbone or investment and provide the engine or economic growth in the country.”
Barry said ExxonMobil’s acquisition of InterOil would enhance opportunities for PNG.
“We are now working with TOTAL as the operator of Papua LNG, to help them in developing another exciting project,” he said.
“We have achieved so much in the last five years.
“Now, we look to what we will achieve in the next five years.”
He said when one reflected on the business environment in 2009 when the PNG LNG project began, “it is not dissimilar to today”.
“The global financial crisis in 2009 created a lot of uncertainty while today’s global commodity prices and global LNG competition are creating a similar environment,” he said.
Barry said the Government’s “bold decision” to create fiscal certainty and to work with the business sector, meant that investment dollars were spent here.