April 20, 2024
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OIL & GAS

Exxon Mobil Accelerates LNG Portfolio Expansion, Prioritizing Own Gas Sales

Exxon Mobil is making significant strides in its plan to double its liquefied natural gas (LNG) portfolio to 40 million tons per annum (mtpa) by 2030, ahead of schedule, according to the company’s LNG chief. Unlike its competitors, Exxon is shifting its focus towards selling its own gas rather than trading third-party gas.

Peter Clarke, Exxon’s senior vice president for global LNG, revealed that the company is reimagining its LNG trading strategy as part of a broader corporate reorganization initiated in 2022.

While Exxon currently lags behind industry giants like TotalEnergies and Shell PLC in LNG trading, it aims to differentiate itself by predominantly trading its own gas.

“Our portfolio is never going to look like Shell’s, it’s not going to look like Total’s, we are targeting different aspects of the value chain,” he told Reuters in an interview.

Exxon’s ambition to double its LNG portfolio by 2030, announced in 2020, is progressing rapidly, with current production nearing 30 mtpa. Clarke affirmed the company’s commitment to achieving this objective, stating that they are slightly ahead of schedule.

While Exxon may explore expanding its trading portfolio by dealing with third-party LNG, Clarke emphasized the greater value in producing, liquefying, and selling its own gas.

“The big component in LNG is obviously the commercialization of the LNG itself,” Clarke said. “We want to have the leading LNG portfolio in the world in terms of its financial robustness and financial returns. I would say we’re well on the way to doing it.”

Exxon’s forthcoming LNG volumes will be bolstered by the Golden Pass LNG project, in which it holds a 30% stake alongside QatarEnergies. Expected to commence LNG production in 2025, the project will significantly contribute to Exxon’s portfolio expansion.

Additionally, Exxon is poised to make further advancements through projects such as the PNG Papua LNG project in Papua New Guinea and a Mozambique project, both slated to progress in the near future. These endeavors align with Exxon’s strategy to cater to the burgeoning energy demand in Asia, where it anticipates substantial growth opportunities.

“The market is expanding, and by 2050, 75% of global energy demand will be in Asia Pacific, so we are really focused in that area,” remarked Clarke, highlighting Exxon’s strategic alignment with Asia’s evolving energy landscape.

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