Exponential growth and great opportunities for the local LNG sector according to Mr Anderson, with China projected to become the world’s second largest LNG buyer by as early as 2017.
“In fact, we expect to see LNG’s share of total Asian gas supply grow from 35 per cent to more than 50 per cent by 2030. This demand offers a terrific opportunity for Australian gas. It’s going to drive the next wave of LNG development in this country but that doesn’tmean we are guaranteed to catch that wave,” Mr Anderson says on a cautionary note.
Collaboration is key
According to Mr Anderson, Australian gas companies need to better collaborate and better manage the issue of costs – particularly with competition now coming from North America and East Africa.
“As we have said publicly for a few years now: capitalising on this opportunity will require good collaboration, and I mean more than just the operational side of things like sharing of helicopters, supply vessels and rigs.
“What we need to see is big ‘C’ collaboration – for example, companies aggregating gas and processing it through facilities operated by others. We think that can generate more ‘win-win’ opportunities for all involved.”
Mr Anderson says Santos would be willing to send its gas through another operator’s plant if this would result in a more economic outcome for all parties involved.
“To my mind, collaboration and brownfield development are key to catching that next LNG wave in Australia, and we’re working closely with our partners to give ourselves the best chance of being on that wave.”
Future opportunities for the local gas industry