Longer-term fundamentals for natural gas and LNG look bright: Qatargas official

Abujbara (centre) with Qatargas delegation at Gastech 2015 in Singapore.The longer term fundamentals for natural gas and LNG looked bright amid new market dynamics and price volatility, a senior Qatargas executive has said. Qatargas chief operating officer (Commercial and Shipping) Alaa Abujbara was presenting a paper at Gastech 2015 Conference now being held in Singapore, titled “Changing global gas dynamics.” He focused on the recent changes affecting the global gas and LNG markets, and the changes expected to be seen over the medium to long term.  Abujbara explained that the global energy sector was going through a “fundamental re-balancing” process, characterised by “new market dynamics and price volatility”. “However, the longer term fundamentals for natural gas and LNG look bright. “We believe that economic growth, urbanisation, environmental policies and the application of new technologies – all support   the long term future of our industry,” Abujbara said. He said in the LNG sector, the global market had been adjusting this year to a number of factors including the lower oil price, lack of short-term demand from the traditional Far East markets, new markets appearing in the Middle East, and ample supply from existing and new producers, all of which have led to an uneven market, where each region was attempting to balance local supply and demand. “Our view is that over the next five years, global gas demand will grow about 2% a year, which is slightly lower than previous forecasts. The slower growth is attributed to lower electricity demand growth in Asia, and lower oil prices leading to less infrastructure development in the Middle East. However, we believe that a strong political will for ‘clean air policies’ is expected to spur gas demand,” Abujbara said. Global LNG trade, he added, currently stands at around 250mn tonnes per year but it was expected to reach over 400mn tpy by 2025. Despite there being over 100mn tonnes of liquefaction capacity under construction around the world, there are questions whether there will be sufficient supply to satisfy demand after 2020. Summing up his views, Abujbara said that the LNG industry was capable of developing the supply base required to meet future demand. With the right set of fundamentals in place, the industry will fulfill its promise of delivering available, affordable and acceptable LNG. “We must remain vigilant in advocating for the future of our industry,” he said. Qatargas is participating in the Gastech 2015 Conference now being held in Singapore.The delegation attending the conference comprises representatives from various disciplines across the organisation. Qatargas is also participating in the exhibition that runs in parallel with the conference, as part of the Qatar Petroleum pavilion. Gastech is a key event for the international oil and gas industry and a global meeting place for energy professionals working in the natural gas cycle. The event is held every 18 months at a different international location. As an “industry leader”, Qatargas said it viewed its participation in such global industry events as an opportunity to discuss issues impacting the business now and in future and share the company’s experience and knowledge with industry peers. The event also offers delegates face-to-face networking opportunities at the highest level.