Shell: Bullish LNG growth

PERTH: Worldwide demand for liquefied natural gas (LNG) will almost double to between 350 million tonnes per annum (mtpa) and 400 mtpa by 2020 compared with about 200 mpta currently, global energy giant Royal Dutch Shell says.Queensland’s booming coal seam gas-to-LNG sector was entering a new phase of growth and investment, and would play a major role in meeting rising demand for the fuel, Shell senior executive Anne Pickard said.Pickard, who is executive vice-president of Shell Upstream International’s Australian arm, said the energy giant remained hopeful that it would complete its proposed multi-billion-dollar joint takeover of Brisbane-based CSG producer Arrow Energy that was being undertaken with PetroChina Ltd.She also said Australia represented the key plank in Shell’s push to boost its LNG output.“Globally, we aim to add around 15mtpa of LNG capacity by 2020, and much of that effort and investment will be focused in Australia, making us one of the biggest investors in the country,” Pickard told the Australian Petroleum Production & exploration Association Ltd conference in Brisbane yesterday.“If the (Arrow) transaction is completed, we will be in a position, through Arrow, to establish an integrated CSG-LNG operation.“It will bring together Arrow’s expertise as a leading coal seam gas operator, Shell’s LNG know-how, and PetroChina’s access to the Chinese energy market.“We are excited about this project (Arrow’s Curtis Island LNG project at Gladstone) and hope the joint acquisition is successful.” – AAP