Santos CEO: No Fear for Australian LNG Exports

 US LNG exports will not be cheaper to Asian customers than the LNG exported from Australia, according to Santos chief executive David Knox

Knox says that taking into account the processing and shipping of US LNG to Japan and Korea the price would reach $US14-$US15 per million Btu, further saying that the growing LNG market will create a huge gap between supply and demand which will be up to 100 million tonnes of LNG a year by 2025. This again leaves enough space on the market for US LNG, Russian gas as well as LNG exports from countries like Australia.

“The end result is therefore one where buyers will seek diversity – both in the origin of supply, and in price,” the Sydney Morning Herald cited Knox as saying.

With shares in various projects such as Darwin LNG and Papua New Guinea, as well as the Queensland GLNG project due to ship its first cargoes in 2015 Knox expects that Santos exports will meet close to 11% of South Korea’s and 9% of Malaysia’s gas needs for the next 20 years.

[mappress]
LNG World News Staff, June 6, 2014