Rise in global demand
BY MELISHA YAFOI
OIL and gas leader ExxonMobil has projected an imminent increase in global demand for energy.
Managing Director Andrew Barry said this will be more than the combined energy demands of Russia, India, Africa, Latin America, Middle East and Papua New Guinea.
Mr Barry also singled out LNG to be the fastest growing major energy source throughout 2018 with global demand projected to rise about 45 percent from 2015.
He said PNG has a lot of gas reserves ready to be developed and harnessed as a cleaner fuel than coal and to reduce greenhouse gas emissions.
“The future of LNG is bright. ExxonMobil projects that increase of population along with growing trade and development will increase global energy demand across the world by about 30 percent from now and the year 2040.
If the demand for natural gas grows it is expected to replace coal to become the number two global energy source. While PNG natural gas resources are vast the cost to develop them is high driven by the terrain and remoteness of the opportunities,” he said.
Mr Barry said just one exploration well costs around K300m and ExxonMobil and partners and investors have invested more than K2bn in exploration alone since 2007.
He also emphasised that development of the LNG resource will be dictated by the requirements of the global markets.
“PNG will need to compete with big like countries like Australia, United States, Russia, Middle East, Africa and others for investment goals in projects in East Asia.
“LNG exports for Papua New Guinea will provide the backbone investments and engine for the economic growth in the region and also provide the opportunity for domestic gas projects.
“Domestic energy needs in PNG will continue to grow and we encourage foreign support and government’s objective to improve access to electricity across the country.
“We are committed to making sure that domestic gas opportunities and taking major steps towards this goal developing a second major power project in Port Moresby and the first in highlands to be approved soon.
“Our acquisition of InterOil will further engage opportunities for PNG and we are now working with TOTAL as the operator in Papua LNG and will support them in another exciting project,” he said.