Name: The future of LNG
Uploaded: 2024-07-30T13:03:29.241Z
Duration: 345.91

LNG Video V4.mp4

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LNG Video V4-1.vtt

English

{{00:00:05}}
LNG is a really interesting fuel.

{{00:00:08}}
You know, if you look at the picture,
the big picture, we are growing.

{{00:00:12}}
The demand is growing dramatically.

{{00:00:14}}
It may not be growing as much as in places
like Europe, where we have seen a bit

{{00:00:17}}
of demand destruction over the last few
years, but it is growing around the world.

{{00:00:21}}
And there's a lot of forecast that
is going to grow 50 percent from

{{00:00:23}}
where the  current levels are.

{{00:00:26}}
So we do have a great demand.

{{00:00:27}}
The question is, where is all this
LNG supply going to come from?

{{00:00:30}}
And that is a concern.

{{00:00:32}}
We have obviously the big
suppliers being the U.

{{00:00:34}}
S., Australia and Qatar.

{{00:00:36}}
Australia is flat, if at best.

{{00:00:38}}
Qatar is going to grow, but that once it
finishes this current state of expansion

{{00:00:42}}
is probably it for what it can do.

{{00:00:44}}
And the Qatari terms tend to
be very strict terms and very

{{00:00:47}}
political as well, their exports.

{{00:00:49}}
And then you have the U.

{{00:00:50}}
S.

{{00:00:50}}
and the U.

{{00:00:50}}
S.

{{00:00:51}}
has been a very reliable seller of gas.

{{00:00:53}}
And the U.

{{00:00:54}}
S.

{{00:00:54}}
is an interesting environment because
we don't have a government control

{{00:00:57}}
entity to control the export of gas.

{{00:00:59}}
So companies like Gulfstream LNG are
welcome to develop their projects

{{00:01:04}}
and to sell their gas to most places.

{{00:01:06}}
We used to think that was a
very easy, lazy, fair attitude.

{{00:01:09}}
We have seen, obviously, that
politics does come into play in U.

{{00:01:12}}
S.

{{00:01:12}}
as well.

{{00:01:13}}
In the last few months, we have seen
what we call the Biden LNG export

{{00:01:16}}
pause that has a bit of an impact.

{{00:01:18}}
But at the end of the day, If I
still look at the big picture,

{{00:01:20}}
we still have to be concerned of
where LNG is going to come from.

{{00:01:24}}
And outside of really now Qatar and the U.

{{00:01:26}}
S., it's very difficult to
develop projects anywhere else.

{{00:01:29}}
And that's why I think a project like
mine, Gulfstream LNG, Has a lot of

{{00:01:33}}
interesting scope because it is going
to be one of the first new greenfield

{{00:01:36}}
projects in the world when most of the
world is not looking at just expansions.

{{00:01:43}}
I think we forget that transition
does not happen immediately.

{{00:01:46}}
It takes a long, long time.

{{00:01:48}}
We have been quote unquote
transitioning away from coal for 50

{{00:01:51}}
years, and last year we use more coal
than ever before around the world.

{{00:01:55}}
So the transition is not a switch
that you flip from one to the other.

{{00:01:58}}
It's not a new phone you upgrade
and you throw the other one away.

{{00:02:01}}
It takes a long, long time.

{{00:02:04}}
And  you have to keep in mind that
we are talking about an energy system

{{00:02:08}}
that literally powers the world.

{{00:02:10}}
So there's a lot of infrastructure
investment that goes down.

{{00:02:13}}
And most of that infrastructure is
designed to last 50 years or more even.

{{00:02:18}}
So LNG is going to play a
very, very important role.

{{00:02:22}}
And I think we are kidding
ourselves to say it doesn't.

{{00:02:24}}
Now, I actually think that
LNG should be considered more

{{00:02:27}}
than just a transition fuel.

{{00:02:29}}
It should be the complementary
fuel to the green transition.

{{00:02:33}}
LNG is a very, very low carbon fuel.

{{00:02:35}}
In the past, we used to consider it as
the transition fuel and we used to call it

{{00:02:39}}
the golden fuel and the golden age of LNG.

{{00:02:42}}
But a couple of years ago, somehow
somebody decided to demonise LNG and

{{00:02:46}}
put LNG in the same bucket as oil and
coal because they're all fossil fuels.

{{00:02:50}}
I guess technically that is correct.

{{00:02:52}}
But at the end of the day, I think
we need to realise that the emissions

{{00:02:55}}
coming out of LNG are a fraction of these
other fuels, and LNG has a proven record

{{00:03:00}}
of countries that use LNG cleaning up
their air, cleaning up the environment,

{{00:03:04}}
and so we need to actually continue
to encourage LNG, and I think that a

{{00:03:07}}
lot of the people who are against the
against fossil fuels and against the

{{00:03:13}}
continuing use of fossil fuels are being
a bit short sighted in their approach.

{{00:03:19}}
We are in a situation today where we
have a lot of our future expectations

{{00:03:24}}
of LNG based on a lot of  false
promises or false expectations.

{{00:03:29}}
You know, we have this assumption
that prices are always going to

{{00:03:33}}
come down for a renewable energy.

{{00:03:35}}
We have seen that it's
not always the case.

{{00:03:37}}
We have these assumptions that
things like carbon storage are

{{00:03:39}}
going to be very easy to implement.

{{00:03:41}}
And we have seen that that's not the case.

{{00:03:43}}
We have this assumption that hydrogen
and all these other projects are

{{00:03:46}}
going to come on miraculously.

{{00:03:47}}
And all we have seen is these
projects getting delayed and not

{{00:03:50}}
becoming financially solvent.

{{00:03:52}}
So If these other magic cures are not
going to work, well, we better  to

{{00:03:58}}
continue to support things like LNG.

{{00:04:00}}
Otherwise, we're going to be in a position
where we have a massive energy deficit.

{{00:04:04}}
By protesting against LNG, all
we're doing is actually bringing

{{00:04:08}}
on an energy crisis to all of us.

{{00:04:12}}
I definitely think that one of
the mistakes that our industry

{{00:04:15}}
has done is assume that we have
a social license to operate.

{{00:04:19}}
And I don't think that's the case.

{{00:04:20}}
We have to earn that social license.

{{00:04:22}}
A lot of our companies, I'm not going
to name names, but we all know these

{{00:04:25}}
companies have been quite hypocritical
in the past, you know, they run

{{00:04:28}}
advertisements showing how wonderful
the natives are and happy they are.

{{00:04:32}}
At the end of the day, they're
destroying the environment.

{{00:04:34}}
And we can just see the record of a
lot of the large companies to do that.

{{00:04:37}}
We have to earn that social license to
operate and got to make sure that the

{{00:04:40}}
economic benefits Help the local community
when companies go out there and ask for

{{00:04:46}}
tax breaks from the local community.

{{00:04:48}}
All they're doing is depriving
the local community off any

{{00:04:50}}
revenues while all the jobs and
everything else are going elsewhere.

{{00:04:54}}
You know, I think that where my
project is in southern Louisiana, it's

{{00:04:58}}
one of the poorest parts of America.

{{00:05:00}}
And if you think about Louisiana now
exporting probably, you know, one

{{00:05:04}}
quarter of the world's LNG, no different
than  Qatar, but yet one of the poorest

{{00:05:09}}
states in America that tells you that
something is not right and we need a

{{00:05:12}}
better way to redistribute the wealth.

{{00:05:14}}
And even in places like
America, it's hard to do.

{{00:05:18}}
It's very, very hard to do
in the developing world.

{{00:05:20}}
So if we don't do it, we
have project cancellations.

{{00:05:24}}
We have civil wars.

{{00:05:25}}
We have lots of problems.

{{00:05:26}}
And I think the industry needs to learn
from its past mistakes and definitely work

{{00:05:30}}
on, make sure the local community is part
of the economic benefits of any project.

You know, if you look at the picture,
the big picture, we are growing.

It may not be growing as much as in places
like Europe, where we have seen a bit

of demand destruction over the last few
years, but it is growing around the world.

And there's a lot of forecast that
is going to grow 50 percent from

The question is, where is all this
LNG supply going to come from?

We have obviously the big
suppliers being the U.

Qatar is going to grow, but that once it
finishes this current state of expansion

And the Qatari terms tend to
be very strict terms and very

is an interesting environment because
we don't have a government control

So companies like Gulfstream LNG are
welcome to develop their projects

We used to think that was a
very easy, lazy, fair attitude.

We have seen, obviously, that
politics does come into play in U.

In the last few months, we have seen
what we call the Biden LNG export

But at the end of the day, If I
still look at the big picture,

we still have to be concerned of
where LNG is going to come from.

And outside of really now Qatar and the U.

S., it's very difficult to
develop projects anywhere else.

And that's why I think a project like
mine, Gulfstream LNG, Has a lot of

interesting scope because it is going
to be one of the first new greenfield

projects in the world when most of the
world is not looking at just expansions.

I think we forget that transition
does not happen immediately.

We have been quote unquote
transitioning away from coal for 50

years, and last year we use more coal
than ever before around the world.

So the transition is not a switch
that you flip from one to the other.

It's not a new phone you upgrade
and you throw the other one away.

And  you have to keep in mind that
we are talking about an energy system

So there's a lot of infrastructure
investment that goes down.

And most of that infrastructure is
designed to last 50 years or more even.

So LNG is going to play a
very, very important role.

And I think we are kidding
ourselves to say it doesn't.

Now, I actually think that
LNG should be considered more

It should be the complementary
fuel to the green transition.

In the past, we used to consider it as
the transition fuel and we used to call it

the golden fuel and the golden age of LNG.

But a couple of years ago, somehow
somebody decided to demonise LNG and

put LNG in the same bucket as oil and
coal because they're all fossil fuels.

But at the end of the day, I think
we need to realise that the emissions

coming out of LNG are a fraction of these
other fuels, and LNG has a proven record

of countries that use LNG cleaning up
their air, cleaning up the environment,

and so we need to actually continue
to encourage LNG, and I think that a

lot of the people who are against the
against fossil fuels and against the

continuing use of fossil fuels are being
a bit short sighted in their approach.

We are in a situation today where we
have a lot of our future expectations

of LNG based on a lot of  false
promises or false expectations.

You know, we have this assumption
that prices are always going to

We have seen that it's
not always the case.

We have these assumptions that
things like carbon storage are

And we have seen that that's not the case.

We have this assumption that hydrogen
and all these other projects are

And all we have seen is these
projects getting delayed and not

So If these other magic cures are not
going to work, well, we better  to

Otherwise, we're going to be in a position
where we have a massive energy deficit.

By protesting against LNG, all
we're doing is actually bringing

I definitely think that one of
the mistakes that our industry

has done is assume that we have
a social license to operate.

A lot of our companies, I'm not going
to name names, but we all know these

companies have been quite hypocritical
in the past, you know, they run

advertisements showing how wonderful
the natives are and happy they are.

At the end of the day, they're
destroying the environment.

And we can just see the record of a
lot of the large companies to do that.

We have to earn that social license to
operate and got to make sure that the

economic benefits Help the local community
when companies go out there and ask for

All they're doing is depriving
the local community off any

revenues while all the jobs and
everything else are going elsewhere.

Expert Insight

As the world transitions towards a more sustainable energy future, the role of liquefied natural gas continues to be debated. Is LNG's limited supply a risk, and can it it aid decarbonisation efforts? Founder and CEO of Gulfstream LNG, Vivek Chandra, examines LNG's potential both as a bridge fuel and longer term energy source, and explains how companies like Gulfstream are navigating community concerns along the way.