Exxon Mobil is ramping up its plan to be a major player in the liquefied natural gas (LNG) market, according to its LNG chief, Peter Clarke. They’re ahead of schedule, aiming to double their LNG portfolio to 40 million tons per year (mtpa) by 2030.
There’s a key change in their strategy, though. Exxon will focus on selling its own natural gas instead of acting as a middleman for others. This is different from industry leaders like Shell, which made $2.4 billion from LNG trading in the last quarter of 2023.
“Our approach is different from Shell or Total. We’re targeting different parts of the business,” Clarke told Reuters. For Exxon, the bigger profit comes from producing, liquefying, and selling their own gas, not just trading it. Long-term contracts, which still make up about 80% of the global LNG trade according to Clarke, are still important for them.
“The key thing in LNG is obviously selling the gas itself,” Clarke said. “We want to be the world leader in LNG portfolios, with a focus on strong finances and returns. We’re on track to achieve that.”
Exxon’s growth will come from several projects. The Golden Pass LNG project, a partnership with QatarEnergies where Exxon holds a 30% stake, is expected to start producing LNG in 2025 and has an estimated export capacity of 18 mtpa.
Exxon also expects to finalize investment decisions for its PNG Papua LNG project in Papua New Guinea and begin engineering and design work for a Mozambique project by the end of 2024. These projects position Exxon to take advantage of the growing LNG market, especially in Asia where they see the most significant future demand.
“The market is getting bigger,” Clarke said. “By 2050, 75% of global energy demand will be in Asia Pacific. That’s where we’re focusing.”
