Industry Experts at LNG 15: Future Supplies Main Problem Facing LNG Industry

Frank Harris, head of Wood Mackenzie’s Global LNG Consulting section, offered his views on the LNG market during today’s session at the LNG 15 Conference in Barcelona, Spain. He suggested that although ongoing delays in liquefaction through 2010 will continue to create a supply shortage, the industry will face a challenge in ensuring adequate supply after 2010 when supplies will have to come from more speculative projects. As a result, the industry has a “strong strategic imperative” to start exploring for gas once more. Harris also emphasized the difficulties international oil companies will face because of the large quantity of proven supplies located in countries where there are already strong national oil companies.

Martin Houston, Executive Vice-President of BG North America, also provided his views on the LNG industry at today’s session. He asserted that the Lake Charles, La., terminal has functioned as the global swing terminal with erratic volumes resulting from price swings in Europe and the U.S. This has helped develop a true secondary LNG market. Houston also echoed Harris’ prediction that finding adequate supply will be the central concern for the industry in the years to come. LNG 15 News offers a more in-depth interview with Houston.