While Canada zig-zags on liquified natural gas (LNG), the world’s largest supermajor is literally doubling down on LNG projects around the globe, especially in Europe and Asia..ExxonMobil has plans to produce about 40 million tonnes per year by 2030..That’s roughly double what it is producing now, and about three times higher LNG Canada project presently under construction near Kitimat BC, which is expandable to 26 mtpa by 2030 — if it is ever approved..That’s almost 60% of the entire demand of Japan, the world’s largest importer..In an interview with Japanese publication Nikkei, senior VP of LNG marketing Andrew Barry said Exxon is keen on natural gas because it emits half as much greenhouse gas as other fossil fuels such as coal.."We're very bullish about the growth opportunities in natural gas and LNG. When you think about that in the portfolio with a corporation, investing in more LNG is certainly part of the strategy," Andrew Barry, vice-president in charge of LNG marketing, said in an interview..The company has partnered with Qatar’s state-owned energy company to build liquefaction plants in Texas as well as in Qatar itself..It also plans to make final investment decisions on new projects in Mozambique and Papua New Guinea with production on each expected by the end of the decade, as well as plans to expand into Mexico..In the wake of Russia’s invasion of Ukraine, Exxon has been signing supply agreements with utilities in Europe to ensure adequate supplies..In addition to Japan, it has long-term contracts for six million tonnes per year with China, the world’s second largest importer. .As more Asian buyers switch from coal to gas, other major oil companies such as Shell and Total are also planning big investments in LNG..Shell is the prime backer of the $40 billion LNG Canada project along with Malaysian state oil company Petronas..It comes as Canada’s Energy Regulator last month suggested Canadian natural gas production would have to fall some 68% if the country is to meet its net-zero targets by 2050.
