Australian gas on the world stage

Jérôme Ferrier has been working in the international oil and gas industry for 38 years, after graduating as a petroleum engineer.

“I was attracted to the industry by the fantastic challenges it provides for young, educated people in petroleum engineering – a true human and technological adventure,” explains Mr Ferrier.

Reflecting on the projects that he has been involved with, Mr Ferrier says he has had his fair share of challenging projects.

“I remember a particularly technical challenge in the early 1980s, when we were developing an oil field off the coast of the Congo, which involved a highly technological process of stimulated injection of steam.

“A more commercial challenge was developing the first LNG project in Nigeria, at the end of the 80s,” continues Mr Ferrier.

“It was very challenging to convince the potential buyers to deal with long-term commitments for LNG coming from Africa.”

He also recalls management hurdles, such as when he was the Director for the Americas for Total, and had to manage the gas and power activities of Total in Argentina, which was a new business for the company, and a new country for Mr Ferrier.

But, he admits, “The most challenging project is always the project of tomorrow.”

Now and then

Having spent a significant portion of his life working in the international oil and gas industry, Mr Ferrier has seen the industry grow and develop over time.

“The current gas industry is much more of a global business than before,” explains Mr Ferrier.

“In the past, the gas activities were handled by a few major players. Nowadays, the competitiveness is much stronger, and the large number of companies from upstream to downstream lead to a more complex industry, and equally complex management of stakeholders.”

Looking to the future, Mr Ferrier envisages three main challenges.

“Sustainability is a key factor for any kind of project you intend to develop; human resources is also vital, with strong local workers and the capacity for attracting new talent; and then the capacity of cost-reduction, in order to be more competitive on the energy scene.”

Australia under the microscope

The International Gas Union (IGU) council met in Sydney in late March 2014, marking the first time that the executive committee has met in Australia.

APIA Chief Executive Cheryl Cartwright is a member of the IGU Executive Committee and gas industry consultant Barbara Jinks is an Australian representative of the IGU.

“This country has become a key player in the Asia-Pacific region with its seven LNG projects currently under construction. During our meetings, we were presented with details about the Australian gas industry, and an interesting exchange took place between producing and exporting countries in the area, particularly Australia, Japan, Korea and China,” explains Mr Ferrier.

While in Australia, Mr Ferrier also attended the APPEA Conference and Exhibition, and was impressed by the interest in natural gas by the industry.

“The presence of 3,500 delegates was unexpected for me, and the participation of high-level Australian politicians and their support for the gas industry is very encouraging.

“The private meetings at ministerial levels show the deep involvement of politicians for gas development.”

Commenting on the role Australia’s natural gas industry plays in the development of natural gas around the world, Mr Ferrier sees Australia as a leader in the region.

“Australia has been producing gas for a long time – and exporting LNG since 1972 with the North West Shelf Project in Western Australia – and with new perspectives in offshore fields as well onshore coal mines in Queensland, Australia looks to become the privileged partner of gas-importing countries in the Asia Pacific region.

“I see that Australian and international companies are well aware of the risk of cost blowouts and the consequences on future gas projects in Australia, and the rest of the world. The shareholders are working hard to reduce the construction costs, but you need a joint effort of all stakeholders – including politicians, unions, and entrepreneurs – to reach that objective.”

A gas union for the world

The IGU represents 95 per cent of gas activities in the world, from upstream to downstream.

“The IGU is the only organisation talking about natural gas on a worldwide scale,” says Mr Ferrier.

“The main goal is to promote natural gas as the cleanest fossil fuel and the best complement for renewables, and gas advocacy is a major issue.”

In 2015, the IGU will host the World Gas Conference in Paris, where Mr Ferrier is excited to welcome his counterparts and industry colleagues from around the globe to further the development of natural gas.

“I am convinced that Australia will play a part in the debate and discussion, and I hope Australian representatives will bring its comprehensive natural gas experience to the world community.”

The World Gas Conference will be held in Paris, France, from 1-5 June 2015. Registrations are now open, and more information can be found here.

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