Global energy majors should take action to help governments promote the use of LNG and clean energy sources to meet national carbon emission targets, says Woodside Petroleum CEO Peter Coleman. Implementing carbon pricing internationally, in his view, would be “the most effective mechanism” to reduce emissions.
“I know, I’m not alone in thinking carbon pricing implemented internationally would be the most effective mechanism for achieving the emissions reductions that are needed. This includes through coal-to-gas switching, which has the potential to be even more significant as new LNG markets open up in Asia,” Coleman recently told an industry conference in Shanghai.
These issues are “front-of-mind” for Woodside, the company’s CEO stressed, as it pursues growth plans in northwest Australia that would significantly increase its LNG production. “This is not just about ensuring we secure markets. It’s about ensuring we are seen as being a significant contributor to reducing greenhouse-gas emissions,” Coleman told the LNG19 conference in Shanghai.
In his view, the contribution of LNG to reducing global greenhouse gas emissions is “nowhere more evident than in China, where the commitment to switch to cleaner energy has created opportunities for gas and renewables. “This includes displacing coal but also new uses for our product in the transport sector, where LNG can displace heavy fuel oil in ships, and oil or diesel in trucks and trains,” Coleman explained.
Considering costs along the entire gas-value-chain in comparison to competing fuels, Coleman said “we have done the math. And I am not just referring to the global LNG supply gap we see emerging from the early 2020s,” Coleman said, adding “I’m also referring
to the prospects for our product in an increasingly carbon-constrained world. LNG is part of that world.”