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Global LNG demand will continue to grow in the foreseeable future, driven by Asia’s rising consumption, the need for security of energy supply, and decarbonization, Australia’s major Woodside Energy Group said on Wednesday.
“The world’s demand for Woodside’s products is expected to be resilient in the coming decades as populations and economies grow, with our target markets in Asia driving primary energy demand,” Woodside chief executive officer Meg O’Neill said on the company’s investor briefing day.
“Growth in demand for LNG in particular is expected to continue as buyers seek to secure supplies to support renewables in the power mix as they decarbonise. Woodside’s LNG-weighted portfolio is well suited to capitalise on that demand,” O’Neill added.
Woodside is currently executing three major projects—the Sangomar oil project in Senegal, Scarborough LNG in Australia, and Trion in Mexico.
At Scarborough, Woodside works with the offshore regulator and other stakeholders to progress secondary environmental approvals and targets first LNG cargo in 2026.
“Once operational, Scarborough would be among the lowest carbon intensity sources of LNG when delivered into north Asia,” Woodside’s O’Neill said.
At Sangomar, the company is targeting first oil in the middle of 2024 and will produce a crude blend that is well suited to European refineries, the executive added.
At Trion in Mexico, Woodside aims to begin production in 2028, having recently received approval of the field development plan from the Mexican regulator.
Woodside and many other energy companies bet on long-term demand for oil and natural gas. Their view is in contrast with a recent report from the International Energy Agency (IEA), which expects demand for all three fossil fuels – oil, coal, and natural gas – to peak before the end of this decade.
While industry executives expect a part of Europe’s gas demand to have been lost for good during the energy crisis last year, they do not see demand in Asia slackening anytime soon, and certainly not before 2030.
By Tsvetana Paraskova for Oilprice.com
Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.