Maarten Wetselaar, Integrated Gas Director, Royal Dutch Shell argues that the LNG industry will only fulfil its long-term potential by coming together to ensure the competiveness of gas and bring down its cost. He says that the industry also needs to call on governments to recognise the benefits of gas through the policies they make.
Speaking at the LNG 18 conference in Perth, Australia, Maarten Wetselaar said that the LNG industry can only realize its long-term potential if it comes together to ensure the competitiveness of gas and bring down its cost.
“The LNG industry will only fulfil its long-term potential through a concerted and consistent focus on innovation.To make sure that happens, a lot of attention rightly goes into technological innovation. But today that’s not what I want to focus on. Instead I’ll talk about cost innovation and policy innovation.” said Mr Wetselaar.
“Costs need to come down to reassure policy makers and customers that gas is a competitive choice with all other energy sources, as well as being a responsible choice from an environmental perspective.. Cost innovation must be looked at by the whole supply chain, from engineering contractors to suppliers. That’s why conferences like this are such a great opportunity to have conversations with counterparts.” he added.
To give an example, Mr. Wetselaar looked at Shell’s efforts to reduce the cost of LNG refuelling sites for road transportation in Europe and the US. He said that, by pooling the thinking of LNG engineers, retail engineers, customers and engine manufacturers, the cost of the LNG refuelling site was halved.
“They developed effective ways to manage boil-off gas and pressure at various stages of the supply chain. They also implemented creative methods for safely reducing the plot size of the sites, thereby saving costs. This kind of collaboration – which helps competitive and cost effective ways of doing business develop – should be the rule, not the exception.””
“Our industry mustn’t be shy about the key role this source of energy should play in the global energy transition. Over the past decade, gas has played an increasingly significant role in meeting global demand for energy and addressing energy poverty. We must ensure this trend continues. That’s the best way of meeting future demand growth with less impact on the environment. For gas to achieve its full potential in powering progress in people’s lives and to play a key role in the energy mix, our industry needs to come together to ensure the competitiveness of gas and bring down its cost. And we need to call on governments to recognise the benefits of gas through the policies they make. Let’s work together to make this happen.” Mr. Wetselaar concluded his speech.
Please click here to view Mr Werselaar’s full speech
Source: Shell
