Eni's Positive Outlook for LNG, Forecasting Increasing European Demand
Eni S.p.A. – the Italian oil and gas multinational – is positive about the outlook for Liquefied Natural Gas (LNG) and sees European demand increasing significantly.
Eni’s Midstream Gas & Power Officer, Mr Umberto Vergine, acknowledges that in the past five years, international LNG prices rose to record ‘highs’ before collapsing, dragged down first by regional markets alignment and afterby the turmoil affecting energy markets.
However, Mr Vergine – speaking ahead of his key plenary session address to the LNG 18 conference in Perth in April – said a strong stream of new LNG projects will provide abundant supply, supporting further market liquidity and growth of LNG demand worldwide.
“Despite short-term turbulence, we maintain a very positive outlook for LNG,” Mr Vergine said.
“European LNG demand will rise significantly, driven by shrinking domestic gas production and ambitious emissions policies, aimed at progressively implementing COP21. Combined with ample regasification capacity and the European Union willingness to diversify supply sources, this will foster Europe’s pivotal role as balancing the market for global LNG,” he said.
“The way the LNG market will work tomorrow is shaped today. Traditional buyers as well as new entrants have a unique opportunity to get their evolving needs fully satisfied, through flexible and innovative commercial terms.
“Among producers, the winners of tomorrow shall combine the quality and size of their upstream assets, providing price competitiveness with outstanding ability to adapt to the evolving buyers’ demands.”
In Mr Vergine’s LNG 18 address, two flagship Eni projects will be discussed, Mozambique Area 4 and Zohr in the Egyptian East Mediterranean – how they are positioned in the global gas and LNG market and how they have the favourable characteristics to meet market requirements.
Key Project specifics will be highlighted that differentiate them and turn them into first call value propositions
Mr Vergine’s address will be one of the headline presentations as part ofan outstanding line-up of highly respected international LNG experts as plenary and concurrent speakers at LNG 18.
Plenary session speakers include leaders from three of the largest participants in the global LNG industry – Mr Ben van Beurden (CEO, Royal Dutch Shell), Mr John Watson (CEO and Chairman of Chevron) and Woodside Ltd CEO Mr Peter Coleman – who will share centre stage when they join forces in Perth to jointly open LNG 18.
LNG industry professionals from more than 70 countries and hundreds of additional gas industry people will attend the 9-15 April conference for LNG 18, the prestigious triennial event that dominates LNG discussions throughout the world.
The exhibition component of LNG 18 will showcase more than 250 key companies and organisations.
The Conference Program is themed around its opening plenary topic: “The Transformation of Gas” – a theme selected to address critical topics currently posed for the global LNG industry.
INDUSTRY BACKGROUND TO LNG 18
LNG 18 is the second occasion Australia and Perth have been chosen as the venue for the world’s largest global LNG event as the city also successfully hosted LNG 12, 18 years ago.
The dramatic growth in the Australian LNG industry since LNG 12 was held in Perth in 1998 has been striking, with the nation rocketing up the output ladder towards being on the cusp of challenging Qatar by 2020 as the world’s largest LNG exporter.
From its fledgling LNG position at the time of LNG 12 in Perth, Australia is today the third largest LNG exporter in the world and with abundant offshore and onshore petroleum reserves under development and close to key LNG demand centres in the Asia-Pacific.
In the past 12 months alone, three new LNG projects on Australia’s east coast, APLNG, GLNG and QCLNG, all based around Gladstone, have come into initial production and export stages.
The triennial International Conference and Exhibition on LNG is owned and presented by the International Gas Union (IGU), the Gas Technology Institute (GTI) and the International Institute of Refrigeration (IIR). The host IGU member for LNG 18 is the Australian Gas Industry Trust (AGIT) with the Australian Petroleum Production and Exploration Association (APPEA) the event’s supporting association.