Woodside Energy predicts that sales will increase by 50% by the year 2032

Meg O'Neill, CEO of Woodside Energy, said that the company expects to see its oil and gas sales increase by 50% in 2032, primarily due to rising energy demand, especially on Asian markets.

O'Neill stated in a presentation at the Capital Markets Day of the company that sales would rise from 203.5 million barrels equivalents per year to 300 million in seven years.

The presentation indicated that this is a 6% annual increase in sales. The company aims to generate $9 billion in free cash flow by the year 2032.

O'Neill stated that despite forecasts indicating LNG export overcapacity in the next decade, Woodside has signed contracts every year until 2030. "We do believe the market is extremely elastic and the market can absorb significant additional supply coming on line."

She said that if customers had believed the market would be flooded with LNG, they wouldn't have signed long-term offtake agreements.

She cited Woodside's Louisiana LNG facility, which will increase export capacity to 16.5 million tons per year by 2029, the Scarborough Gas Field, set to begin production in 2026, as well as the Trion Oil Field in Mexico, among the key projects.

Woodside's presentation predicted that the total Chinese demand for natural gas by 2040 would be more than 60 billion cubic feet daily.

O'Neill stated that China would be able absorb a large amount of LNG as long as the price is affordable and the LNG remains appealing to them.

O'Neill believes that Louisiana LNG offers Woodside the best investment prospects in terms of economic returns. The first phase of the project was approved in early this year. The second phase will increase export capacity to 27,5 million tonnes per annum.

Woodside will produce 90% fossil fuels in 2030. This is because it has slowed down clean energy projects due to lack of commerciality, and the changes brought about by the new U.S. Administration.

(source: Reuters)