Long-term gas market outlook remains strong

OIL Search managing director Peter Botten says the long-term market outlook for gas remains strong.
He said the expansion of the PNG LNG and the Papua LNG projects were expected to start early in the next decade and should coincide with an increase in demand and a shortage of supply. Botten said in the Oil Search June update that the PNG LNG and Papua LNG were making progress while less competitive projects had been delayed or cancelled.
He said there was an opportunity to drive cost even lower making PNG the highest ranked in the new expansion and growth projects globally.
He said cooperation of all parties was required.
Botten said there was potential to enhance the economies of the third train of the PNG LNG Project and the Papua LNG by cooperation between the two projects.
He said agreements created a path way to cooperation and integration of two world-class LNG projects.
He said agreements aligned with Oil Search interest across the projects. Botten said the process InterOil had been undertaking could have resulted in the sale of interest in Papua LNG to a new party. It would have made cooperation more difficult with more players.
He therefore said Oil Search decided to drive value across all its LNG assets.