• Natural Gas News

    High LNG prices for a few years yet, says Woodside's O'Neill: press

Summary

Low spending on new infrastructure contributed to supply-demand imbalance prior to Russian aggression.

by: Callum Cyrus

Posted in:

Complimentary, Natural Gas & LNG News, Asia/Oceania, News By Country, Australia

High LNG prices for a few years yet, says Woodside's O'Neill: press

Meg O'Neill, CEO of Australian LNG exporter Woodside Energy, expects increased LNG prices to continue through 2023 and potentially for a few years longer, as global markets strive to restore the mismatch between gas supplies and demand, Reuters reported May 25.

O'Neill was speaking on the sidelines of the World Gas Conference in Daegu, South Korea. Tighter LNG markets had preceded Russia's invasion of Ukraine in February, she said, mainly due to low spends in new infrastructure in recent years.  Woodside hopes its A$16.5bn Scarborough LNG project off western Australia will add incremental volumes, with first gas now officially set for 2026. A final investment decision on the project was reached last year.

At present, Woodside exports LNG from the 4.9mn mt/year Pluto LNG liquefaction plant. Scarborough will deliver a further 8mn mt/yr of capacity, for export as well as domestic markets, and Woodside also has a 5mn metric tons/yr expansion of Pluto underway. 

Woodside's stake in Scarborough will soon rise to 100%, in light of its pending merger with BHP Group's petroleum arm. And O'Neill said Woodside is courting potential offers for some of its stake in the development.