DOHA: The long-term fundamentals for natural gas and LNG look bright, said Alaa Abujbara, Qatargas Chief Operating Officer – Commercial and Shipping, in a paper presented at the Gastech 2015 Conference in Singapore. He said the global gas demand will grow about two percent per year over the next five years.
Qatargas is participating in the conference being held from October 27 to 30 at the Singapore Expo. The delegation attending the conference comprises representatives from various disciplines across the organisation.
Abujbara’s paper, titled ‘Changing Global Gas Dynamics’, focused on the recent changes affecting the global gas and LNG markets, and the changes expected to be seen over the medium- to long-term. The global energy sector is going through a fundamental re-balancing process, characterised by new market dynamics and price volatility, he added.
“We believe that economic growth, urbanisation, environmental policies and the application of new technologies — all support the long-term future of our industry,” Abujbara said.
Abujbara added that in the LNG sector, the global market has been adjusting this year to a number of factors including the lower oil price, lack of short-term demand from the traditional Far East markets, new markets appearing in the Middle East and ample supply from existing and new producers, all of which have led to an uneven market where each region is attempting to balance local supply and demand.
“Our view is that over the next five years, global gas demand will grow about two percent per year, which is slightly lower than previous forecasts. The slower growth is attributed to lower electricity demand growth in Asia, and lower oil prices leading to less infrastructure development in the Middle East. However, we believe that a strong political will for ‘clean air policies’ is expected to spur gas demand,” Abujbara said.
Global LNG trade, he added, currently stands at around 250 million tonnes per annum (mtpa), but it is expected to reach over 400 mtpa by 2025. Despite there being over 100 million tonnes of liquefaction capacity under construction around the world, there are questions whether there will be sufficient supply to satisfy demand after 2020.
Summing up his views, Abujbara said that the LNG industry is capable of developing the supply base required to meet future demand. With the right set of fundamentals in place, the industry will fulfil its promise of delivering available, affordable and acceptable LNG. “We must remain vigilant in advocating for the future of our industry,” he concluded.
Gastech is a key event for the international oil and gas industry and a global meeting place for energy professionals working in the natural gas cycle. The event is held every 18 months at a different international location.As an industry leader, Qatargas views its participation in such global industry events as an opportunity to discuss issues impacting our business today and in the future and share our experience and knowledge with industry peers.
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