KUALA LUMPUR — April 14, 2016: Petronas has called on all stakeholders in the liquefied natural gas (LNG) industry to take a bold step to help curb the vicious cycle of price volatility, while enhancing mutually-beneficial partnership among producers, buyers, industry contractors and governments to spur investments.
At a session on ‘Investing for Growth’ at the LNG 18 Conference in Perth, the national oil company’s president and group chief executive Datuk Wan Zulkiflee Wan Ariffin told the audience that the current state of the industry, with lower prices and declining investments, was rooted in the collective actions of stakeholders.
Nevertheless, he remains bullish on the prospects of the industry, which is expected to grow 40 per cent by 2040, according to the International Energy Agency.
“Collectively, we must take a bold step – we either continue to feed the vicious cycle, or tame it to serve our purpose. This is where all key stakeholders must play their part to create a more equitable LNG market, capable of supporting future investments for uninterrupted and affordable energy supplies to fuel the world’s economies.
“For producers like Petronas, I believe it is about taking a long-term view and continuing to invest in hard and soft infrastructure through the cycles. We’re not only investing in the upstream development projects, plants and LNG vessels but also in developing the capability of the people operating them — talents throughout the whole value chain from geologists, to plant technicians, right up
to the mariners, LNG marketers and traders.”
Wan Zulkiflee mentioned technology as a key investment area for Petronas as reflected in the development of the Floating LNG Satu (PFLNG Satu), the first facility of its kind in the world.
Another example is a pioneering technology to re-liquefy the boil-off-gas from LNG tanks and tankers during loading at the LNG complex in Bintulu.
Wan Zulkiflee also said that while Petronas remains committed towards responding to customer needs with innovative commercial solutions, he would like to see buyers understand that producers need fair returns to maintain their facilities and continue to reinvest in future supplies.
He would also like contractors and vendors to aggressively invest in research and development and offer game-changing technology to reduce costs, and execute innovative project management schemes in collaboration with project developers to improve delivery. — Bernama