Australia set to be No 1 in LNG: Exxon

17 May 2012, 5:21 pm   -   Source: AAP

A senior executive of petroleum giant Exxon Mobil says Australia has the potential to become the biggest exporter of LNG.

RELATED

Australia should be the world's biggest exporter of liquefied natural gas by the end of the decade, says the vice president of the world's biggest petroleum company.

The emergence of natural gas as a power source was a decisive shift in the history of energy, Exxon Mobil's Asia Pacific, Africa and Power head Emma Cochrane told a business lunch in Melbourne on Thursday.

She also said the prospect of renewable energy sources becoming reliable or affordable enough to generate meaningful amounts of power in the next 30 years was unrealistic.

"Australia will supply one-fifth of global LNG supply by 2020, it's been an amazing growth story," she said.

"That would make it the largest LNG exporter in the world ... with Asia the biggest gas market by 2040.

"Australia is well-placed to realise the goals stated by Resources, Energy and Tourism Minister Martin Ferguson to move from a regional hub to a global leader."

Massive investments of $170 billion in committed capital expenditure have already been made in LNG projects around Australia.

Exxon is itself a partner in the Gorgon LNG project off Australia's northwest coast.

But falling gas prices have raised doubts about the projects.

Ms Cochrane said she was confident that natural gas was the fastest-growing energy source and demand will have increased by 60 per cent by 2040, surpassing thermal coal.

"With 60 per cent fewer emissions than coal it has important environmental implications," she said.

"Population and economic growth will see GDP double and the current population on earth of seven billion people increase to nine billion in 30 years ... joining the quest to improve the quality of their lives."

Advocates of natural gas say no other energy source can match it for reliability and flexibility.

However opponents such as conservation groups oppose it because it still emits carbon and potentially threatens the environment, through unconventional extraction methods such as coal seam and shale gas.

Ms Cochrane said 54 per cent of the world's recoverable gas reserves consisted of unconventional gas.

"We have some very aggressive assumptions on renewables but its on a very small maze and still doesn't become significant in the time horizon to 2040," she said.

"They are expensive. A lot of renewables proceed with subsidies and what do you do when the wind is not blowing, the sun is not shining or it is not raining much for hydro plants?"

AAP gr/bt

  • Follow us: 
  • Follow us on Facebook
  • Follow us on Twitter
  • Follow us on Youtube