Guy Broggi, now Senior Advisor to the Director of LNG at TOTAL SA, recently spoke about the tremendous impact American LNG exports will have worldwide, the future of the Asia and Australian markets, and Total’s long term investment strategy and commercial operations. Mr Broggi is one of the headline speakers at the upcoming European Gas Conference in Vienna and here he will elaborate on this further during the Global LNG Day.
Mr Broggi explained that Total’s investment strategy is based on long-term outlook on the industry whereas the company’s commercial operations are decided based on the resources available in the short term (5 – 10 years). Total achieves maximum flexibility through a trading organization which enables Total to take advantage of the market situation and provides flexibility in terms of production and the final destination of LNG.
Despite high LNG prices and an attractive market in Asia, Mr Broggi stressed that Total’s strategy is to serve all markets worldwide and retain a strong presence in all continents through the entire value chain. Total’s operations in Indonesia, Brunei, Australia, Yemen, Norway, Qatar and Nigeria already serve the Asian market and they are continually looking to expand their global footprint.
The conference program will include an in-depth look at global LNG industry developments and their impact on the European market, particularly in light of the discovery of shale gas in the USA and the country becoming a gas exporter rather than an importer as it has been up to now.
When discussing the impact of Australia’s LNG exports on the global market, Mr Broggi explained “Australia is to become the first exporter of LNG in 2020 surpassing Qatar by far and this will alleviate any concern we might have for the supply of LNG worldwide.” He said Total is already present in two new large projects in Australia, Santos CBM LNG at Gladstone and ICHTYS project in Northern Territory with Inpex, and that “Total is hoping that its newly acquired concessions in Western Australia will lead to new productions if we are successful.”
Mr Broggi went on to discuss the impact of the USA becoming an LNG exporter saying: “The US LNG exports will have a tremendous impact worldwide, first in the Southern Cone where Argentina and Chile will be relieved from previously thought skyrocketing prices; secondly it is a real physical back-up for Western Europe (mainly the UK) against any bad news from Qatar’s Ras-Laffan LNG production and thirdly it’s a price signal about a potential convergence of worldwide prices for natural gas.”
Mr Broggi will be joining the speaker panel at The European Gas Conference in Vienna where he will elaborate further on the global LNG market looking at the post Fukushima environment and the potential for US exports in more detail.