Australia needs to claw back LNG investment: Krzywosinski

Chevron Australia Managing Director Roy Krzywosinski.

Chevron Australia Managing Director Roy Krzywosinski.

Chevron Australia Managing Director Roy Krzywosinski has told the APPEA 2015 Conference that Australia is at risk of losing further investment in LNG, amid rising competition from other exporting countries.

“We need to recognise there has not been a final investment decision on an Australian LNG development since 2012,” Mr Krzywosinski said.

“As many of us forewarned, including at previous APPEA conferences, the second wave of LNG investment for Australia – which promised to deliver further benefits – is at serious risk of not happening, at least in the foreseeable future.”

Mr Krzywosinski said there are many complex reasons behind this, although a major factor is Australia’s falling international competitiveness against a backdrop of rising competition from emerging global LNG suppliers.

“As we look ahead, we need to claw back that competitiveness and create the investment environment here in Australia that helped us harness the gas boom in the first place,” Mr Krzywosinski said.
“This is the big opportunity before the LNG industry and nation today.”

Chevron is currently constructing the Wheatstone and Gorgon LNG projects in Western Australia, with Gorgon due to come online in the coming months.

Joint venture interests in the project include Chevron (operator, 47 per cent), ExxonMobil (25 per cent), Shell (25 per cent), Osaka Gas (1.25 per cent), Tokyo Gas (1 per cent), and Chubu Electric Power (0.417 per cent).

First LNG is expected at the Wheatstone Project in 2016, which is approximately 55 per cent complete, via a 250 MMcf/d onshore domestic gas plant at Ashburton North, WA.

The project is a joint venture between the Australian subsidiaries of Chevron (64.14 per cent), Apache Energy (13 per cent), Kuwait Foreign Petroleum Exploration Company KUFPEC (13.4 per cent) and Kyushu Electric Power Company (1.46 per cent), together with PE Wheatstone Pty Ltd (part owned by Tokyo Electric Power Company, 8 per cent).

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