Unconventional liquefied natural gas (LNG) projects will play a limited role in the future of the LNG industry according to energy analysis firm Wood Mackenzie.
Frank Harris, head of LNG consulting at the firm, revealed at LNG16 that no more than 5% of total global LNG supply in 2020 will be accounted for by unconventional LNG supply projects.
“We fully expect unconventional gas feedstock to become a feature of the LNG supply industry, but its suitability as a feedstock for LNG appears limited and it will be geographically constrained – it is hard to see the next Queensland at the moment,” Harris said.
Referencing Wood Mackenzie’s presentation at LNG15, three years ago, Harris said: “Three years ago we highlighted the challenge that the international oil companies (IOCs) faced in accessing gas reserves and so it’s no surprise that since then they have increasingly looked at unconventional gas as a potential source of feedstock for LNG plants.”
