By Emily Chow and Marwa Rashad
Milan (Reuters) – Exxon Mobil is expecting strong growth in liquefied natural gas demand in China, motivated by the transport and sea sectors, and sees an increase in opportunities in new markets through Asia -Pacific, Africa and Latin America, a senior manager in Reuters said on Tuesday.
China, the world’s largest importer in LNG, has signed transactions on September 2 to stimulate gas supply through the Power of Siberia Pipeline and to build the power of Siberia 2, which could raise concerns since it could move China’s appetite for imported LNG.
“The recent gas agreements in Russia-China do not change our plans and our expectations in China,” said Andrew Barry, vice-president of Global GNL Marketing and president of development of the Exxon Mobil market.
“I am very optimistic in China, we believe that LNG will continue to grow and be competitive in the Chinese landscape,” he said on the Touche de Conference Gastech in Milan, adding that trucks fueled by LNG and marine ships are developing quickly and are areas of mass growth in China.
In August, Exxon plans that global gas demand increases by more than 20% by 2050 compared to last year, as it moves coal to electricity industries and respects higher electricity consumption in developing countries.
Barry said the first American producer of American oil and gas was under discussion in several regions for potential investments and target markets, refusing to give more details.
“There are new markets that have a need for natural gas and need for LNG, and demand is there, but they do not yet have the infrastructure in place, but we see that in Asia-Pacific, Vietnam, Thailand, the Philippines, South Africa and Colombia, important potential markets,” he said.
Barry rejected concerns about an excess LNG offer while projects in Qatar and the United States are starting to get online next year, saying that demand will increase to meet the offer.
The terminal of $ 10 billion and 18 million metric tonnes per year of Ornum in Sabine Pass, Texas, jointly owned by Exxon and Qatarenergy, is one of the projects that should bring a new supply to the market later this year.
Barry said that Train 1 on the project is 97% complete and that the company aims at the first train LNG 1 towards the end of the year.
(Report by Marwa Rashad and Emily Chow; additional report by Francesca Landini; edition by Marguerita Choy)
