CVX Chevron Corporation

   By Dan Strumpf 
 

PERTH, Australia--Natural gas demand is expected to grow by 35% over the next 20 years, but costs of development need to remain under control, Chevron Chief Executive John Watson said at an industry conference here Tuesday.

Mr. Watson told a crowd during the kickoff of a conference on the liquefied natural gas industry that demand for natural gas worldwide will remain strong in the decades ahead.

To meet that demand, "we are going to need a project the size of Gorgon every year for the next 20 years," he said, referring to the company's giant $54 billion LNG export facility that just began shipments off Australia's western coast in recent weeks.

But he added that costs in Australia remain high, and the energy industry needs to work to keep costs under control if it wants to meet the world's natural-gas needs. Gorgon's costs rose sharply since the partners began work on the project in 2009.

"Australia has many advantages, but it is going to need to recognize that it is a competitive world and Australia's costs are high today," Mr. Watson said.

He said costs in Australia are 40% higher than those in the U.S. Gulf Coast, adding: "We do need to make sure these projects can remain competitive."

-Write to Dan Strumpf at daniel.strumpf@wsj.com

(END) Dow Jones Newswires

April 11, 2016 23:35 ET (03:35 GMT)

Chevron (NYSE:CVX)
Historical Stock Chart
From Mar 2024 to Apr 2024

Chevron (NYSE:CVX)
Historical Stock Chart
From Apr 2023 to Apr 2024