Singapore, Singapore (PressExposure) July 07, 2011 -- Bank of America-Merrill Lynch commented that, "The global LNG market is tightening rapidly. In our view, the global gas glut is set to disappear quickly". Analysts are echoing similar sentiments with expectations for global demand for gas to exceed demand for coal by 2030. Following market projections, OAO Gazprom, which supplies 25 per cent of Europe's natural gas, is set to accelerate production and boost output ahead of schedule to try and match the anticipated spike in demand for the super-cooled fuel. Russia, Iran and Qatar hold the top three, largest natural-gas reserves with Qatar being the world's largest exporter of liquefied natural gas.
This surge in LNG demand is primarily driven by countries keen to switch from polluting fuels such as oil and coal and their ever-increasing energy consumption propelled by economic growth and urbanisation. China aims to cut its reliance on coal and triple the use of natural gas so that by 2020, LNG would account for ten per cent of the Republic's energy consumption. Post Fukushima, Japan, the world's largest liquefied natural gas (LNG) consumer, may require up to 5.4 million tonnes per year of additional LNG.
Indonesia's PT PLN seeks additional natural gas supply from Australia and Papua New Guinea in addition to exploring options of importing LNG from Iran and Kuwait. Anticipating the uplift in demand for natural gas, Petroliam Nasional Bhd (Petronas) is aggressively expanding its gas production business. On June 2, the Malaysian O&G behemoth announced a RM3.32 billion purchase of half of Progress Energy Resources Corp's shale gas assets. Approximately 32 per cent of Malaysia's LNG demand is met from imported sources. Escalating demand has forced existing offshore production to run constantly at full capacity resulting in frequent unscheduled maintenance works, according to Petronas. Intensive upstream exploration yields technologically and commercially challenging new fields in high-pressure, high-temperature plays.
Royal Dutch Shell PLC agreed to acquire a 6.4% stake in the proposed Wheatstone natural-gas-export facility from Chevron Corp in Australia in response to demand in Asia for clean-burning fuels. The deal includes an 8% interest in the Wheatstone and Iago gas fields operated by Chevron that will supply the Wheatstone liquefied-natural-gas terminal, scheduled to ship its first LNG cargo from Western Australia to customers in Japan and South Korea in 2016. Also, Royal Dutch Shell PLC and China National Petroleum Corp have agreed on a venture to increase efficiency of drilling of onshore gas wells by deploying automated directional drilling and optimisation.
According to market analysts, natural-gas demand in Japan, China and other Asian countries is rising, with no new, large-scale LNG projects due to come on stream for five to six years, the supply-demand balance in the Pacific basin is tightening. It is projected that demand from the Asian-Pacific region will rise to 241 million tons in 2020 from 138 million tons in 2010. Various socio-economic developments have led to a boom in the global LNG market and particularly in the Pacific basin. LNG buyers and producers can congregate and dialogue during Production Optimisation Week Asia (POWA) from 25th to 29th July 2011 in Kuala Lumpur Malaysia.
With increased demand for natural gas, we need to inquire:
Are we leveraging on the increased LNG demand for higher GDP?
Are we engaging buyers of LNG and fulfilling their energy needs?
What are our mid to long-term strategic plans in tackling O&G challenges?
In what ways are we optimising production for sustainability, safety and profitability
Production Optimisation Week Asia Welcomes Dr. Ing. Evita Legowo, Director-General, Oil & Gas, Ministry of Energy and Mineral Resources, Indonesia and Mr. Aftab Ahmad Khan, Executive Director, Oil and Natural Gas Corporation, India
With the recent affirmation of the Indonesian government on its aim to increase oil production to one (1) million bpd over the coming years by offering new exploration rights and encouraging enhanced production from existing wells with its fresh incentives to oil and gas investors and ONGC Rajahmundry Asset's over-achievement of its onshore oil & gas production targets year after year since 2006, we would like to welcome Dr. Ing. Evita Legowo and Mr Aftab Khan to Production Optimisation Week Asia!
Dr. Ing. Evita Legowo leads Indonesia's oil and gas industry to new heights with favourable tax treatment and improved production splits, as the country considers offering more incentives to foreign investors to encourage oil and gas projects.
As Executive Director - Asset Manager, Rajahmundry Asset of ONGC, Mr. Khan is responsible for steering the most valuable region of ONGC where onshore activities are spread over three districts in the State of Andhra Pradesh viz., East Godavari, West Godavari and Krishna. Also looks after the drilling operations of ONGC in offshore in the East Coast.
The Center for Energy Sustainability and Economics is convening Production Optimisation Week Asia (POWA) 2011 from 25th to 29th July 2011 in Kuala Lumpur Malaysia to help oil and gas companies such as state-owned oil companies from as far as the Africa, South America and the Middle East to generate alignment to boost recovery and revenue and come together for informed and integrated approaches to a diverse variety of conditions. The meeting will involve senior company executives as well as functional heads in charge of reservoir engineering, production engineering, drilling and completions engineering, particularly those involved with each company's mature, marginal, deepwater and other technically and commercially challenging fields.
POWA 2011 is specifically designed based on the feedback of experts and specialists from major oil and gas operators concerning their current challenges and needs associated with maximising production and with world-leading optimisation strategies and solutions. Ergo, we ascertained that POWA 2011, with its well-rounded and solution-focused structure, will successfully respond to the need for ground breaking solutions and technology as well as policy and strategy and cost-efficient advanced techniques to maximise and optimise production, increase recovery and improve HSE.
Thus, for the very first time - combining the reservoir, production and completions engineering, POWA 2011 will provide you a real comprehensive, multidisciplinary platform highlighting the breadth and depth of information you need to provide the best solutions and services to your clients in oil and gas industry as they share their current challenges and needs. The event website can be accessed on http://www.arcmediaglobal.com/powa
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