Shell: Innovation Vital to Australia's LNG Future

Innovation will play a key role in the competitiveness of Australia’s liquefied natural gas (LNG) industry as global production grows substantially in the next decade, according to Shell Development Australia’s Commercial General Manager Doug Buckley.

Speaking at the Australian National Conference on Resources and Energy (ANCRE) in Canberra Friday, Shell’s Doug Buckley said new solutions would be required if Australia was to compete on the international stage, with supply from several sources expected to rise significantly.

Shell has been at the forefront of innovation in Australia after approving the development of the Prelude project off the north-west coast of Western Australia in 2011 using the floating liquefied natural gas (FLNG) technology.

With FLNG, Shell will be able to produce natural gas at sea, turn it into LNG and then transfer it directly to ships that will transport it to customers.

In August, Woodside Petroleum Ltd., the largest Australian-based oil and gas company, also recommended to its joint venture partners that Shell’s FLNG technology be used as the development concept for its majority owned Browse project off Western Australia.

“We are pleased that FLNG is starting to become recognized as an important additional competitive advantage for Australia,” Buckley said during his presentation.

However, Buckley warned that by 2030 global supply of LNG would possibly outstrip demand as production was also expected to increase sharply in North America, East Africa, Russia and from other sources.


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