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Woodside Energy Group, a leading provider of fossil fuels in Asia, foresees a prolonged need for oil and natural gas in the forthcoming years. This anticipation stems from the growth in population and industrialization across developing Asian nations. CEO Meg O'Neill highlighted the ongoing rise in demand for liquefied natural gas (LNG), especially as purchasers aim to secure resources for facilitating the integration of renewable energy sources into their power generation, as part of the decarbonization effort.
Woodside, headquartered in Perth, is actively advancing expansion projects and aims to achieve its first liquefied natural gas shipment from the Scarborough project off Western Australia's coast by 2026.
In the face of intensified global competition, LNG consumers have been entering into long-term supply contracts. Additionally, some European nations are increasingly turning to seaborne gas after a reduction in Russian pipeline flows, viewing it as a less emissions-intensive alternative to coal.
However, the International Energy Agency offers a contrasting outlook, suggesting lower LNG demand through the 2040s due to an accelerating adoption of renewables, potentially impacting the long-term profitability of certain projects.
The agency also forecasts that global oil demand will peak in this decade, influenced by the rising popularity of electric cars and China's economic cooling.
O'Neill highlighted Woodside's Sangomar oil development in Senegal, set to supply oil from mid-2024, offering a crude variety suitable for European refineries. The Trion project in the Gulf of Mexico is targeting production from 2028 at a cost of less than $50 per barrel.
Woodside has set a target of reducing Scope 1 and Scope 2 emissions by 15% by 2025, and is currently engaged in the pursuit of cost-effective methods to decarbonize its facilities. Additionally, the company is conducting an evaluation of carbon capture initiatives in Australia, with the capacity to sequester more than three million tons of emissions per year by 2030. These projects could play a pivotal role in sequestering emissions for both Woodside and its customers.
