YPs attend LNG 17 20 Jun 2013

Apache’s Dean Manifis was one of four Young Professionals selected by the Australia Gas Industry Trust (AGIT) to attend LNG17 in Houston, 16-19 April 2013. The conference is held every four years and brings together upstream exploration and production companies together with buyers, sellers, traders and suppliers from 80 different countries.

At this year's conference the mood was one of optimism for the growth of LNG over the period 2010 – 2030, with recognition of the considerable challenges facing the growth of the industry. Some of the key themes covered at the conference included:

  •  Gas at the heart of a sustainable energy future
    A clear message from most of the speakers was that gas is at the heart of a sustainable energy future and LNG demand is expected to double by 2025, with the main growth coming from the Middle East, Asia and South America

  • US LNG Supply
    S
    ources of alternative supply in the future include East and West Africa, Russia, Middle East and United States.

  • LNG Pricing
    There was much discussion about whether the arrival of Henry Hub priced LNG into Japan will have an impact on LNG pricing in Asia and whether the global model for LNG pricing is changing.

Throughout the course of the week there were many networking events that the YPs attended.

The organising committee of LNG18, to be hosted in Perth on 12 – 15 April 2016, hosted a small cocktail party on the second evening of the conference. The function attracted some of the industry’s most prominent figures. Grant King, CEO of Origin and director of the LNG18 Executive Committee, welcomed attendees and discussed the background of how Perth won the opportunity to host the conference, piping Qatar at the post.

The Hon. Gary Gray, Federal Minister for Energy, followed and made a sincere tribute to the Hon. Martin Ferguson for all his hard work in positioning Australia to be one of the world’s largest LNG exporters.

After a busy week of back to back conference sessions, peer meetings and a plethora of social events, Dean Manifis said the final day of LNG17 delivered some valuable insights into emerging LNG commercial arrangements in the United States.

“LNG projects in the United States are challenging the status quo due largely to a highly liquid domestic gas market, increasing supply volumes and low gas prices.

“Davis Thames – President of Cheniere Marketing provided an outline of Cheniere’s commercial arrangements. Cheniere has linked LNG supply deals with buyers where Cheniere will sell LNG for 115% of the U.S. benchmark Henry Hub prices plus a fixed fee of US$2.25 - $3 MMBtu.”

The finale of the conference was the ceremonial handover from the LNG17 organising committee to the Perth LNG18 organising committee. The hand over celebrations included a traditional didgeridoo performance and the singing of Australian classics like “Waltzing Matilda” and “I Still Call Australia Home”. However, the Texan attractions of an indoor rodeo, armadillo racing, line-dancing, mechanical bull rides and lots of 10-Gallon hats also grabbed Dean’s attention.

Dean is grateful to AGIT and Apache for providing the opportunity for him to attend LNG17.