Woodside CEO says D-Day spirit needed for Australia to win global LNG leadership
Woodside Petroleum Chief Executive Peter Coleman compared the efforts to complete the World War Two D-Day landings in France to the huge development challenges of Australia's LNG industry and its efforts to win global LNG leadership.
Coleman told the annual conference of the Australian Petroleum Production & Exploration Association in Perth that his company's own Pluto LNG project was recently brought on stream on the 70th anniversary of work beginning on another petroleum project named Pluto.
"I am referring to the Pluto oil pipeline, which supplied the Allied armies on the continent following the D-Day landing. This remarkable feat of engineering, which saw more than 100 kilometres of pipeline laid across the English Channel in total secrecy, was critical to the success of the Allied invasion," said Coleman.
"As US army commander General George S. Patton said at the time: 'My men can eat their belts, but my tanks gotta have gas.'," said Coleman, referring to gasoline supplies.
"That quote is a great reminder that even in extreme circumstances, energy really is one of humanity's most basic needs," Coleman stated.
Coleman said Australia's future "global leadership" in LNG will also require industry operators to be "values-based" in their decision making.
"Integrity is crucial here. Fulfilling our commitments, and doing the right thing by our people, the communities in which we operate and the environment.
"These should be non-negotiable elements of Australian LNG's business model, and never compromised for reasons of cost or schedule," Coleman stated.
The Woodside CEO pointed out that Australia was now "a high-cost LNG environment" exacerbated by a strong Australian dollar and a tight skilled labour market.
He said Australian oil and gas wages were the second highest in the world, and were more than double the global average.
He said Australian LNG projects also carried costs associated with major social investment programs and community partnerships, and complying with rigorous environmental and safety requirements.
"Factoring in such costs leaves us with less margin for error on project delivery, and means we simply can't compete dollar-for-dollar with some of our competitors.
"But they are also features of our industry that we can be proud of. Offering competitive wages and conditions to our people, and making a positive, long-term difference to local communities - including of course Indigenous Australians.
"As our numbers grow, LNG operators in Australia should all continue this values-based approach to our operations, ensuring we meet the growing expectations of government and the broader community," Coleman said.
"This is what leadership is all about - having a vision, and bringing others along with us. The disadvantage of operating in a high-cost environment can also be offset by a commitment to excellence across the LNG value chain.
"Matching premium price with premium performance. This is how Australian LNG will continue to thrive in a more competitive supply environment.
"If we want to be leaders, we must be creative and stay ahead of the competition. Technology and innovation are crucial to this. Right now we are in a position of strength in this regard. Australian LNG is making good use of advances in modular construction, and leading the way in developments such as coal seam gas-to-LNG and floating LNG.
"Our challenge is to ensure that this is still the case 10 years from now, with these developments having had a seamless transition into production in Australia," Coleman said.
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