Australian LNG poised to light the way with learnings from Europe

Australia has been crowned the world leader of LNG production, but the local industry can still learn from mature operators in other geographies that have weathered multiple commodity cycles and created an integrated, diversified offshore industry, the AOG 2020 conference is set to be told.

Deloitte National Oil, Gas and Chemicals Leader Bernadette Cullinane said Australia’s new LNG projects have now transitioned to operations and are rapidly scaling up to nameplate capacity.

“The challenge now is to ensure our production can compete in an increasingly challenging global LNG market, while also stretching to embrace new opportunities. We can gain insight into this journey by looking to the North Sea where the industry is more mature,” Ms Cullinane said.

“There is an opportunity for us to build on what we have in Australia to become a leading light of innovation and technology. The facilities we have here are unlike any other: they are brand new, world-scale, highly sophisticated and technically cutting edge. We need to harness this platform and bring the power of rapid innovation into our thinking.”

Ms Cullinane is chair of the March 12 AOG Conference session ‘Creating a Sustainable Ecosystem – Lessons from Europe’ which will also feature speakers from Baker Hughes, GCE Ocean Technology, the Government of Western Australia and Scottish Development International.

“This year the theme for the AOG conference is the ‘ForWArd Together’ and it’s a very apt title because it is about the new decade, about progress and how we’re going to navigate in the increasingly uncertain energy future,” Ms Cullinane said.

“AOG is the first conference kicking-off the year so it really sets the tone for what’s happening in the industry – and in this case the new decade. The conference has a perfect opportunity to make a stamp on where the industry is going and how it should be preparing.”

During the session, GCE Ocean Technology Chief Executive Owe Hagesaether is expected to discuss the Norwegian experience, exploring how a cluster of almost 130 of the country’s companies have come together to collaborate and support the oil and gas industry and adjacent industries in Norway – particularly seafood farming and renewable offshore wind energy.

Attendees will also hear from Baker Hughes Vice President Graham Gillies who will discuss the company’s global centre of excellence in Montrose, Scotland, which is a collaborative effort with the UK Government to build and grow innovative, cost-effective technologies to support the subsea industry in the North Sea.

Ms Cullinane said she expected sustainability and decarbonisation of the industry – from operators through to end users – to also be discussed during the session, citing Europe as a global example where companies are making significant commitments to change.

“European-based supermajors have made commitments or revised their commitments upwards on decarbonisation – and not just of their own operations, but extending that into ‘scope three’ emissions which includes the end-use of energy whether that be at a power plant or at a petrol station,” she said.

“Concerns about the investability of the oil and gas sector going forward means companies today are seriously working to continue to be attractive to investors, consumers and a broader set of stakeholders. Companies are looking very deeply into their own business models and taking action to remodel and position themselves to be successful.”

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Hear more from Bernadette in the free AOG conference. Register free to attend.