Chairman of FGE, Dr. Fereidun Fesharaki, said currently they forecast 180 million tonnes in Final Investment Decisions (FID) to be made between 2018 and 2021, in a bid to supply demand from 2022 to 2025.
Dr Fesharaki said this at the 3rd Petroleum and Energy Summit in Port Moresby last week.
Dr. Fesharaki said a significant shortage is expected from 2022 to 2025, following a lack of FIDs between 2016 and 2018, and by 2022, there will be a major shortage.
“But what is very significant is that there is a massive amount of FIDs without customers. LNG you sell first and produce later.
“This time things will begin to change. We have in our forecast 180 million tonnes of LNG to be FIDs between 2018 and 2021. Of these 36 million tonnes have been already FID. Another 150 million tonnes is still on its way.”
Dr Fesharaki said the announcement of the Papua LNG gas agreement signing in April was positive news.
He advised that the Third Train of the Papua LNG project should be signed this year.
“So it’s very important to realise that if you get at the back of the line you will get into problems.
“So I was pleased Prime Minister to hear that you will sign the gas agreement for Papua LNG in April 5th of 2019, but since Papua LNG on its own is project development requires three trains, that third train needs to be signed right away too.
“It is my hope that gas agreement is signed sometime in the middle of the year. Because we have to do it together, it cannot be separate items. And because of that, it is essential that we ensure we remain at the start of the queue and not at the back.”
Meanwhile, Dr Fesharaki said he does not expect LNG prices to fall below US$60.