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Business Times (Malaysia): Shell sees LNG demand rising 7pc a year in

Asia-Pacific
Kamarul Yunus

DEMAND for liquefied natural gas (LNG) in the Asia- Pacific region is expected to grow by about seven per cent a year over the next decade, Royal Dutch Shell executive vice-president for global business Peter de Wit said.

He said LNG will continue to play an essential role in meeting expanding Asia-Pacific energy demand and in reducing environmental impact.

Presenting his working paper at the 12th Asian Oil and Gas Conference in Kuala Lumpur yesterday, Wit noted that the development of LNG trade in Asia-Pacific since the 1970s has been a remarkable success.

“The reliable, long-distance supply of clean, efficient LNG has provided great benefits for customers and suppliers.

“It is easy to forget the many challenges – technological, operational, commercial – that had to be overcome to achieve this. In 1970, LNG was at the early stage that Gas-to-Liquids is today,” he said.

He said Malaysia played a key role in this advance, with development of the very successful Malaysia LNG projects – Satu, Dua and Tiga.

“Shell is proud to have played a part in this, and of our continuing partnership with Petronas,” he said.

Building on the success in the Asia-Pacific region, he said, the rapid global expansion of LNG can be seen driven by the environmental advantages of gas, industry’s success in driving down costs, and the desire to diversify energy supplies.

By 2020, global demand for LNG could be more than 2.5 times the 2005 level, with many more customers and suppliers.

He said the market in the Atlantic will soon match that in Asia-Pacific, and LNG will shortly start flowing across the Pacific to the west coast of North America.

In Malaysia, Shell and Petronas Carigali are undertaking the massive E11 hub project – involving the integrated development of five fields – to provide long-term gas supplies to the Petronas LNG complex in Bintulu, Sarawak.

Wit said Asia-Pacific LNG supply is already tight, and with rapidly expanding demand, likely to remain so for some time to come.

He said Shell is strongly committed to Malaysia and to its businesses, partnerships and to the people in this country.

“As well as our core businesses, many activities supporting Shell businesses across the region are also located here.

“Looking forward, despite increasing challenges, I believe our shared future is bright, particularly in the LNG business,” he said. – By Kamarul Yunus

Published: Jun 13, 2007

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