Crisis will not hit LNG projects says Woodside

Despite the financial crisis liquefied natural gas demand is still expanding and the market for the super cooled gas will not impede Woodside’s projects, the Australian giant’s marketing president said.

Speaking at Woodside’s investor briefing, Reinhardt Matisons, cited an independent forecast from energy consultancy Wood Mackenzie, saying that LNG demand is forecast to expand by 7% per year to 2020, edging down slightly from last year. “That means the current market of 180 million tonnes per annum would grow to about 400 million tonnes per annum by 2020,” he said. Matisons explained that while traditional LNG importers such as Japan, Korea and Taiwan would underpin Woodside’s new projects such as Pluto and Sunrise, demand from China and India was also strong. “These markets can absorb any surplus LNG that comes into the market and thus keep the market really tight for the foreseeable future,” said Matisons. “Notwithstanding the financial crisis, we still see a good strong, long-term market for our LNG. Put that another way – the market won't hold up our projects,” he added.
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