Photo: Chairman and CEO of Chevron Corporation Mike Wirth
SHANGHAI, April 2 (Xinhua) -- The 19th International Conference & Exhibition on Liquefied Natural Gas (LNG2019) opened in Shanghai on April 2. Mike Wirth, chairman and CEO of Chevron Corporation and speaker of a LNG2019 plenary forum on Global Outlook for LNG said in an exclusive interview with Xinhua that with global LNG market becoming more dynamic, it's necessary for industry players, from buyers to sellers, to create more flexible and creative agreements to maximize the potentials of LNG market.
-- Flexible partnerships are critical to global LNG market
LNG market, a truly global market capable of developing, producing and transporting affordable, reliable and clean energy to countries around the world, could not prosper without scale development and innovative partnerships, said Wirth.
"The emerging global LNG market is a clear case study in what it takes to scale cleaner energy. It's a monumental challenge - and no single country, no single industry, no single company can do it alone," he added.
Currently, global LNG marketplace is maturing and benefitting from new participants and there is more liquidity in the market and more flexibility for buyers and sellers, Wirth told China OGP. "We believe that is a good thing and expect it to continue," said Wirth.
"We are seeing a more dynamic LNG marketplace where buyers and sellers are creating more flexible and creative agreements to serve ever-changing needs," he added.
Against this backdrop, Wirth suggests that LNG industry need to create many more innovative partnerships to strengthen the maturing LNG market and allow it to reach its full potentials.
According to Wirth, partnerships are central to Chevron's approach to developing LNG business. Chevron will work with its partners to shape a LNG market that is more flexible, more interconnected and more efficient, in an effort to secure greater value for every participant, said Wirth.
-- Chevron continues to expand business presence in China
Over the past two years, China's natural gas consumption has continued rapid growth, driven by multiple factors such as stable economic growth, and continuous campaign to switch scattered coal with gas.
In the year of 2018, China overtook Japan as the world's largest natural gas importer and the country's LNG imports are also maintaining a strong growth momentum.
China has plans in place to boost LNG imports four-fold over the next 20 years, Wirth expected.
With nearly 115 years of history in China, Chevron is continuing to grow its business in China through long-term agreements and spot LNG sales with major end-users, said Wirth.
In October 2018, Chevron delivered its first long-term LNG cargo to China at the Zhoushan LNG receiving terminal under the agreement with ENN, a leading private clean energy provider in China.
In addition, Chevron has concluded approximately 19 percent of its total spot LNG trades with Chinese counterparties and delivered 24 percent of its total spot LNG supplies to China since 2016.
"We hope to continue our partnership into the future and play a role in providing the affordable, reliable and clean energy that fuels a growing economy," said Wirth.
Speaking of the LNG 2019, Wirth said Shanghai's selection to host this conference showcases the critical role China is playing in shaping the future of energy. It also highlights the rising importance of LNG in creating that future, both in Asia and around the world, he added.
This triennial event was first held in 1968. This year marks the first time the conference to be held in China, the world’s fastest growing LNG market. LNG 2019 is presented by the International Gas Union (IGU), Gas Technology Institute (GTI) and the International Institute of Refrigeration (IIR).
The Shanghai conference, the largest LNG event ever held in China, is hosted by China LNG Association, China Gas Society, Chinese Association of Refrigeration and China Gas Association. An estimate of over 170 enterprises and 1,800 representatives from 53 countries and regions attend the conference. The conference will last to April 5. (Contributed by Wang Haijun)
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