Woodside Energy has downplayed concerns that liquefied natural gas (LNG) demand in Asia will decrease following the announcement of Russia’s Power of Siberia 2 gas pipeline to China. Chief executive Meg O’Neill stated that while China is a significant part of the northeast Asian demand region, other key markets like South Korea and Japan remain crucial for Woodside. Woodside Energy is an Australian petroleum exploration and production company. It is Australia’s largest independent oil and gas company.
O’Neill noted the increasing importance of price-sensitive countries such as India, Pakistan, and Bangladesh in terms of LNG demand. Speaking on Bloomberg TV, she highlighted China’s consistent strategy of energy diversification, citing numerous long-term LNG offtake agreements signed by China in recent years. O’Neill acknowledged that tariff disputes have temporarily reduced LNG exports to China but reiterated the country’s commitment to diversifying its energy sources.
Her comments followed the announcement of the Power of Siberia 2 project, which will substantially increase Russian gas supply to China. BloombergNEF estimates that the pipeline could displace up to 40 million metric tons of LNG supply to China annually around 2031, when the expansion is expected to be completed. This increased supply could potentially lead to fewer LNG deals from China in the coming decade, posing challenges for global LNG suppliers like Woodside.
Despite the potential shift in Chinese gas supply, Woodside remains confident in the overall strength and diversity of the Asian LNG market. The company’s strategy focuses on maintaining a broad geographic footprint and catering to a range of customer needs across the region.
