Finding a home for Australian LNG in developing power markets
Craig Henderson A C and David Miller BA Advisian, Level 13, 111 Somerset Road, Singapore 238164.
B Advisian, Level 13/333 Collins Street, Melbourne Vic. 3000, Australia.
C Corresponding author. Email: craig.henderson@advisian.com
The APPEA Journal 59(2) 605-608 https://doi.org/10.1071/AJ18090
Accepted: 16 April 2019 Published: 17 June 2019
Abstract
Recent energy market trends have opened the opportunity to exploit Australian liquefied natural gas (LNG) as a cost-competitive fuel source for power projects in developing markets. Regrettably, having favourable market conditions does not automatically lend itself to projects getting sanctioned and being successful. It is fair to say that the number of projects up and running in the current market is less than expected. This paper aims to explore some of the key reasons why LNG to power projects fail to become a reality and what Australian LNG producers could do to achieve their ambition of creating new markets to sell their LNG into. The paper concludes by outlining several development approaches that are being used in industry and how Australian LNG suppliers can partake in these approaches by standing out from the crowd, framing the opportunity, aligning agreements to the capability of the technology and understanding scale and industrial ecologies.
Keywords: developing economies, development models, risk management, South-east Asia.
Craig Henderson is a Managing Consultant, Strategy and Transaction Services, South-east Asia. Qualified as a mechanical engineer, Craig broadened his horizons through a Master’s degree in Engineering for Sustainable Development from the University of Cambridge. Craig has worked across Australia, South-east Asia, China, Africa, the Pacific, India and the UK providing business outcome-focused solutions to clients who primarily develop, operate and maintain physical assets. Craig has taken on various advisor and project management roles, ranging from small projects to large programs, and relishes the challenge of managing uncertainties. This exposure, coupled with his professional background and personal passions, allows Craig to conceptualise and implement creative business solutions in challenging and developing markets. Craig is responsible for the South East Asia and China Hydrocarbons team and its strategic growth in the region. He is responsible for leading and developing various projects across Advisian’s numerous service lines to ensure optimal business outcomes are realised by its customers. Craig sits on Advisian’s South East Asia and China Leadership Team to drive growth and performance in the region. |
David Miller is a managing consultant, Front End Hydrocarbons, Midstream and Onshore. David has over 30 years industry experience. As chemical engineer, David spent his first 20 years in operating companies covering operations and maintenance management, corporate strategic planning, project management and technology team leadership. During this time David enhanced his technical skills with an MBA at Melbourne Business School. He has spent the past 10 years in engineering consulting, with a focus on front-end developments, currently as the global LNG technology specialist for the Advisian and WorleyParsons business. In this work David combines technical and commercial aspects to assist in strategy development and delivery, for his customers’ identified opportunities. Involvement in over 30 LNG-related developments, including technical leadership for over 20 LNG terminal developments in phases from concept through to delivery, and ongoing operations support, has enabled David to have a significant insight into both the technical and commercial aspects of these projects. |
