Are Australia and USA competing for Asia's growing LNG demand?

At an Australian-American Chamber of Commerce program at the Asia Society in Houston, four experienced panelists covered LNG export/import options, risks and opportunities in depth. They drew on their experience of LNG projects around the globe, noting infrastructure limitations in many countries to take full advantage of LNG imports. View link to the panel discussion scope

The speakers were from LNG marketing in an operating company, financing of major infrastructure and energy projects, transactions and negotiations from a law firm, and an consultant in gas/LNG economics for project development.

Although the challenge and opportunity presented to the panelists was posed as Australia vs. the USA, the influence of Russia quickly became apparent in their coverage of the actual gas pipeline and LNG shipping activities. Russia's GazProm has become more sophisticated in pricing natural gas just low enough to keep more European countries from switching to LNG imports. China is also looking toward Russia for pipeline gas. On the LNG front, the restart of some Japanese nuclear plants lowered their demand, now imports for Japan, Korea and Taiwan are at a plateau. India has significant needs but lacks infrastcrure to take advantage of LNG imports on a large scale.

All the speakers addressed the sytemic advantages the USA has in gas (and oil) development, due to our legal system for mineral and surface rights, and pipeline networks across the country. The USA will have LNG for export for decades to come: whether it goes to Latin America, Europe, Asia or to elsewhere may change over time as countries invest in LNG-to-power to replace other forms of electricity generation.

Author: Bob Andrew, Technical Editor, Gas Processing magazine

 

 

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