International Petroleum Technology Conference, Beijing, China
The market for natural gas and LNG remains very strong. I would like you to think about three things that will help strengthen that outlook:
- LNG is all about connecting supply with demand. LNG is a key enabler to making that happen.
- Markets should dictate how we connect LNG
- Success will require creative partnerships and different approaches than we have seen in the past
If we do these three things successfully, we can all be part of energizing Asia.
We can enable economic progress. We can enhance the lives of people across the region and we build a foundation for our connected future. All by providing affordable, reliable and ever-cleaner forms of energy. Natural gas can do just that.
Connecting supply with demand now
LNG is already efficiently moving molecules to where demand and needs are the greatest to complement existing or new natural gas markets in many countries, particularly in this region.
The emergence of a robust, efficient global market for natural gas through LNG has been quite remarkable. In fact, it is one of the most important LNG developments that we have seen for many years.
Examples from my company – we have built two of the largest LNG projects - Gorgon and Wheatstone. Both in little over two years have shipped over 600 cargoes of LNG – with our very first to China late last year.
To put things in perspective, one cargo of LNG can power over 8,000 homes in this region for a full year.
Markets should dictate how we connect LNG with customers
So, what is the point? Consumer needs are growing. LNG provides a solution to connect natural gas supply to the markets and demand centers that we see emerging.
How do we do that? By moving away from traditional thinking as we have done in the past to thinking about the needs of the market and consumer first.
The needs of the customer should dictate how we connect supply with demand. As an industry, we must respond by being flexible and efficient in how we meet those needs.
Success depends on creative partnerships
Creative partnerships are vital. They provide investment, efficiency, know-how and markets at scale
I saw this firsthand in Pennsylvania as part of the Appalachian basin development. There companies, communities and governments work together. We are seeing the same thing emerging in Western Australia in the Carnarvon Basin where collaboration is unlocking new resources that will ultimately find new markets in China, Thailand and many other countries in this region.
Creative partnerships will lower risk for new solutions. They let IOCs venture into new areas we may not have traditionally entered and pursued.
We can do this. We can energize Asia if we use LNG to connect the supply and meet the demands of natural gas in the region. We can let markets drive how we connect LNG and we can use partnerships to serve the world’s and particularly this region’s ever-changing energy needs.
Remarks at panel session
President, Chevron Asia Pacific Exploration & Production