Exxon Mobil expects strong growth in China’s LNG demand, fueled by the transport and marine sectors. The U.S. energy giant also sees rising opportunities in new markets across Asia Pacific, Africa, and Latin America, a senior executive told Reuters on Tuesday.
China, the world’s largest LNG importer, recently signed deals to expand gas supply through the existing Power of Siberia pipeline and build Power of Siberia 2. Some analysts fear this could reduce China’s appetite for imported LNG.
“Recent Russia-China gas agreements don’t change our plans and expectations in China,” said Andrew Barry, Exxon Mobil’s vice president of global LNG marketing, speaking at the Gastech conference in Milan. He stressed that LNG-fueled trucks and ships are growing fast, creating massive opportunities in China.
In August, Exxon forecast global gas demand to increase by more than 20% by 2050 compared with last year. Rising use of gas is expected to replace coal in industries and meet growing electricity needs in developing nations.
Barry added that Exxon is holding talks across several regions for potential LNG investments, though he declined to share details. “There are new markets with rising LNG demand but limited infrastructure. We see strong potential in Vietnam, Thailand, the Philippines, South Africa, and Colombia,” he said.
He also dismissed oversupply concerns as new projects from Qatar and the U.S. come online. Exxon expects global demand growth to absorb the additional capacity.
One of the upcoming projects is the $10 billion Golden Pass LNG terminal in Sabine Pass, Texas, jointly owned by Exxon and QatarEnergy. The plant will produce 18 million metric tons annually. Barry confirmed that Train 1 is already 97% complete and should deliver its first LNG by the end of the year.
