She said that while the Ukraine war had accelerated Europe’s transition away from fossil fuels,its immediate need for non-Russian energy would support the market for the next decade.
In the longer term,O’Neill was unconcerned about high prices destroying future demand as potential customers shied away from investing in expensive gas import terminals,distribution systems and gas-fulled power and industrial plants.
She said the International Energy Agency’s 2021 “sustainable development scenario” predicts Asia-Pacific gas demand above 2020 levels out to 2050.
“We continue to see gas as an important part of the energy transition,as it offers lower carbon intensity firming,to partner with renewables,” O’Neill said.
However,the “sustainable development scenario” results in global warming of 1.7 degrees,above the 1.5 degrees targeted by the Paris Agreement. The IEA scenario consistent with 1.5 degrees of warming predicts falling gas demand and prices.
Woodside’s climate policy was rejected by 49 per cent of its shareholders at its May annual general meeting and industry fund NGS Super recently sold its Woodside shares citing concern the company would be left with stranded assets.
O’Neill said Woodside was increasing work on its $US12 billion Scarborough-to-Pluto project in Western Australia with all major equipment items procured,fabrication of the floating production unit topsides and onshore construction works under way.