Liquefied pure gasoline demand and costs are each set to rise by way of the tip of this yr, in response to Woodside Vitality Group Ltd., Australia’s largest producer of the gas.
Declining home gasoline manufacturing and rising power wants in rising Asian economies comparable to India, the Philippines, Vietnam and Malaysia will assist drive the expansion, Chief Govt Officer Meg O’Neill mentioned in an interview on Tuesday. In the meantime, Japan, South Korea and China will stay key clients, she mentioned.
“We’re beginning to see extra demand from the non-OECD nations in Asia,” O’Neill mentioned on a name after the corporate launched earnings for the six months by way of June. “As their financial system grows, their power demand grows.”
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Whereas oil costs have fallen this yr as OPEC+ returns shuttered manufacturing, pure gasoline has remained sturdy in each Asia and Europe, O’Neill mentioned in a separate interview with Bloomberg TV. LNG is historically offered below long-term contracts linked to grease. Nevertheless, Woodside has benefited as a couple of quarter of its gas is offered with an indexation to gasoline, O’Neill mentioned.
“We’re well-positioned for the gasoline market to choose up as you head towards the Northern Hemisphere winter,” she mentioned. “That’s when gasoline is de facto in demand, and so we do anticipate costs to begin to strengthen even additional as we head towards the again half of the yr.”
The Australian firm reported underlying attributable revenue fell 24% from a yr earlier to $1.25 billion within the half. Woodside booked a $143 million impairment from its choice to exit the H2OK hydrogen undertaking in Oklahoma, and a $430 million provision to decommission oil and gasoline fields.
“We proceed to have an ambition to spend money on these low-carbon power sources and the options to traditional fuels,” O’Neill mentioned about hydrogen on Bloomberg TV. “However the market is evolving extra slowly than of us may need thought 4 or 5 years in the past.”
In the meantime the upper decommissioning cost mirrored surprising problems at some legacy offshore fields, the place engineers found residual oil and gasoline in pipelines that had been considered empty, O’Neill mentioned. Woodside has paused work whereas it re-examines find out how to safely dismantle the infrastructure, she mentioned.
Income jumped 10% to $6.6 billion, following the beginning of the corporate’s Sangomar undertaking in Senegal in June 2024. It declared a dividend of 53 cents a share, down 23%. The inventory fell probably the most since June.
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