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Exxon doubles gas supplies and eyes Asia demand

Steel News - Published on Mon, 08 Nov 2010

Reuters reported that Exxon Mobil Corporation expects strong demand in Asia Pacific to absorb fresh gas supplies after doubling Q3 output from a year ago on production from new liquefied natural gas trains in Qatar.

However, unconventional gas in Asia will take longer to develop unlike in the United States due to the lack of pipeline infrastructure, even as ExxonMobil prepares to start exploratory drilling in coalbed methane blocks in Indonesia.

Ms Linda DuCharme VP at ExxonMobil Gas and Power Marketing Company said that in my mind, we can\'t get gas fast enough as an industry because of the demand out there. In Asia\'s developing countries, total energy demand will double in the next 20 years while natural gas demand will grow by 125%.

She said that ExxonMobil\'s available gas supplies for sales have risen to 12 billion cubic feet per day in the Q3 up from 8 billion cubic feet per day in the same quarter last year. Supplies from Asia Pacific and the Middle East are around 5 billion cubic feet per day. Producers are eyeing Asia to provide homes for new capacity as the world struggles to absorb supplies with many developed economies still in recovery mode.

In Indonesia, ExxonMobil has signed agreements with state utility Perusahaan Listrik Negara and fertilizer producer PT Petrokimia Gresik for evaluating gas sales from the Cepu block in Java which has 2-3 trillion cu ft of proven and potential natural gas reserves. Exxon Mobil said in January it expected peak crude oil production of 165,000 barrels per day from its Cepu block to be delayed until the end of 2013.

In Singapore, ExxonMobil is looking at importing its own gas in the long term for its power plants. ExxonMobil operates a 140 MW cogeneration plant which currently uses imported pipeline gas. It is building another 220 MW unit to supply electricity to the Jurong Island oil and petrochemical hub.

Mr Abdullah Al Attiyah oil minister of Qatar said that demand and supply could become balanced in 3 years but the International Energy Agency says the oversupply could last a decade. Between 2009 and 2010, ExxonMobil and Qatar Petroleum started up four 7.8 million tonne per year LNG trains.

(Sourced from Reuters)

Posted By : admin on Mon, 08 Nov 2010
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