16 March 2005
The chief executive of energy giant BP yesterday implored suppliers to consider the gas market's current and future situation and to continue dealing with the "challenges of the emerging global gas economy".
Speaking at the Gastech Conference in Bilbao, Vivienne Cox's talk entitled 'Great Gas Markets - What Does the Future Hold?' addressed all UK organisations in addition to those around the world.
Ms Cox explained that much change has transpired during the past 20 years, with energy consumers today purchasing nearly two thirds more gas than they did two decades ago.
Questioning whether there was a global market for gas, she explained that although the answer was "not yet", the sector was seeing some "remarkable inter-regional plays which are affecting prices and contract terms.
"Great gas projects need great gas markets," she commented. "You can not produce gas without a very clear view of which markets it is going to and how those markets are likely to evolve during the lifetime of the contract."
With regards the near future, Ms Cox said that if gas is to fully realise its potential, then BP needs to accelerate globalisation of the gas business which could reportedly be achieved by expanding inter-regional supplies via LNG and pipelines.
She concluded by saying that much work was still needed and suggested that "the gas industry is at a cross-roads".
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