By OGJ editors
HOUSTON, May 18 -- Natural gas is "well positioned" to capture nearly a third of all energy-market growth by 2020, said Alex Dodds, managing director of Ras Laffan LNG Co. Ltd (RasGas II) of Qatar at a May 12 industry meeting in Singapore.
Growing demand for natural gas "will outpace the ability of many regions to source their supplies domestically or import via pipeline," thus increasing the global LNG market, said Dodds.
"The trend in gas supply and demand has grown by 15% over the last 5 years (3%/year) from just over 260 bcfd to 300 bcfd. Projecting future growth to continue at 2.2% will create an excess in demand equivalent to just under 20 bcfd of gas or roughly 125 million tonnes/annum of LNG by 2010," he said. This would double global LNG demand by 2010 to 250 million tonnes/year and further increase it to over 430 million tonnes/year by 2020, Dodds said
The industry's key challenge will be to develop the scale and infrastructure necessary "to bridge the increasing gap between the reservoir and the consumer," Dodds said. Qatar's global LNG strategy extends the boundaries of an LNG development project beyond the typical production and liquefaction scope to include the entire LNG value chain, from reservoir to regasification, he said.
"Integrating and executing such projects requires not only world class gas reserves but the people and experience to develop the technology and execute the projects required to capture the economies of scale and economically deliver LNG across a diverse range of markets," Dodds said.
"Qatar has set new benchmarks in virtually every aspect of LNG project development from the use of new technology, establishment of a new business model, innovative commercial arrangements, and development across the entire LNG supply chain," Dodds claimed.
He told reporters RasGas has invested in strategic agreements to "strengthen relations with the sizeable Asian markets." He emphasized the milestone sales and purchase agreements with Korea Gas Corp. (KOGAS), 4.9 million tonnes/year since 1999, and Petronet LNG of India for the sale of up to 7.5 million tonnes/year, starting in 2004.
As for current negotiations to execute an exclusive agreement with the Chinese Petroleum Co. for 3 million tonnes/year of LNG, commencing in 2008, Dodds said, "Discussions are ongoing; however, it is too early to conclude outcomes at this stage."