AFR: Lack of Demand to Delay Australian LNG Projects

Australian liquefied natural gas producers hoping to get new projects off the ground will have to wait years before they can find customers as global markets work through a glut of supply and higher-cost projects are pushed down the development queue, according to respected energy forecaster Fereidun Fesharaki.

Woodside Petroleum's Browse floating project, the Sunrise venture in the Timor Sea, and the ExxonMobil-led Scarborough project off Western Australia will all take longer than anticipated, as will most Canadian LNG projects, said Singapore-based Dr Fesharki, chairman of FACTS Global Energy.

"The Australian projects, there is room for them, but they will have to wait," Dr Fesharaki said, pointing to a need for more contracted supplies only in 2025 or later. 

Woodside and its partners are nearing a decision within weeks to start detailed engineering and design work on their Browse floating project, and are targeting a final go-ahead for the venture by the end of 2016 with the aim of commencing production after 2020. But Dr Fesharaki said Browse wouldn't be able to proceed to a final investment decision without contracts with customers, which looked unlikely in the current market. MORE