NLNG Managing Director and Chief Executive Officer Philip Mshelbila has called for stronger global cooperation to improve LNG supply, support affordability for emerging markets and ensure continued energy expansion despite rising geopolitical and trade tensions.
He made the call while speaking at a panel on Energy Expansion in a Challenging Global Trade Environment at the World LNG Summit and Awards in Istanbul, Turkey.
Mr Mshelbila said coordinated action across the LNG value chain is necessary to prevent a deeper energy divide and to keep natural gas relevant in a lower carbon future.
“In order to safeguard global energy security from the risks of geopolitics and unilateral (national and regional) policies and sanctions, LNG contracts must evolve from merely defining volume and price to actively managing sovereign risk, through diversification of supply sources, delivery routes and contract terms,” he said.
He warned that global energy growth could slow unless issues around LNG supply, pricing, financing and decarbonisation are addressed. He added that the shift in global trade has pushed the market from a period of short-term contracting to renewed interest in long-term agreements after the 2022 supply shock. According to him, both types of contracts are now in demand due to elevated global risk.
Mshelbila said LNG must remain available and affordable while also cutting emissions if it is to meet rising global energy needs. He noted that natural gas will stay relevant well into the future, but this will require increased supply, better pricing access and faster decarbonisation across the industry.
He pointed to ongoing capacity expansions in the United States and Qatar, as well as NLNG’s Train 7 project which will add eight million tonnes per annum of new production. However, he said affordability remains a major concern, noting that high prices have pushed some developing countries back to coal and other cheaper but more polluting options.
The World LNG Summit, now in its twenty-fifth edition, brings together policymakers, producers, buyers and financiers to discuss the future of the global LNG industry.
