Gas demand to pick up globally by 2020: Economist

By MATTHEW VARI

Sunday, November 15, 2015 (Sunday Chronicle, PNG)

ECONOMIST and BSP Capital boss Richard Baryslewicz made the comments when referring to the long term investment potential in the PNG market in the gas production sector.

He said with new projects emerging on the horizon, capital investment should not be based on current upheavals in the economy but on the expected windfalls in the years ahead for the energy exporting nation.

The general manager said with gas currently flooding the global markets, 2020 is set to deliver the most returns for the country with no new projects set to come on stream globally- leaving the new Gulf LNG project coming online in 2020 to boost revenues.

“The important thing if you take a step back in the immediacy of this year and look around the world what is happening,” Baryslewicz said.

“Right now there is a surplus of gas in the world which will actually reverse itself and by 2020-2021 there will be a shortage of gas in the world with no new projects coming on stream.”

“So PNG to anyone that thinks beyond the immediate year and thinks three to five years will see PNG as an opportunity to participate in a major new energy exporter close to markets that need energy and there will be a shortage of product to those key markets.”

He added that a rationale company or investor that looks at PNG and says that I need to be there would acknowledging that it is a frontier emerging market.

“It is not a perfect world, but it isn’t anywhere, even in first world markets, but acknowledging all of those factors that are undeniable and PNG is very well placed to participate.”