ExxonMobil remains bullish on long-term LNG demand
The ongoing war in the Middle East has not changed ExxonMobil’s long-term bullish outlook for LNG consumption, with most conflict-driven demand destruction expected to be confined to the near term, Andrew Barry, vice president of LNG Marketing at the company, told Platts, part of S&P Global Energy, in an interview. “What’s happening in the Middle ...
Andrew Barry, ExxonMobil's vice president of LNG Marketing, remains confident in the long-term demand for liquefied natural gas (LNG) despite the conflict in the Middle East, according to a recent interview. Barry emphasized that the ongoing war has not impacted ExxonMobil's fundamental outlook for LNG consumption, with most demand destruction expected to be temporary.
He projected that global LNG demand would more than double by 2050, reaching 793.6 million metric tons, which is a more bullish forecast than recent S&P Global Energy CERA projections. Barry noted that while recent demand destruction has occurred due to price-sensitive buyers retreating from LNG amid multiyear index highs, this is a short-term shift.
He anticipated "a lot of latent demand" in countries like India, where buyers might enter the market at lower prices. Temporary demand declines were observed in Europe, where consumers pulled back on stocking, but Barry saw this as a short-term issue that would be replenished as the winter period progresses. Despite soaring spot prices curbing consumption, Barry highlighted that spot sales only account for a fraction of global LNG volumes, with the majority still under long-term contracts.
ExxonMobil's LNG portfolio is not tied to specific production sites, and the company aims to expand its trading arm to supplement its core project development work.
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