Isra-Mart srl : Carbon tax a risk to LNG exports, warns Woodside Petroleum

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WOODSIDE Petroleum chairman Michael Chaney has told shareholders that the Gillard government's plan to introduce a carbon tax on liquefied natural gas could lead to international customers looking past Australia for cheaper gas supplies or turning to dirtier energy sources such as coal.

Addressing the company's annual meeting in Perth today, Mr Chaney said LNG was regarded as a lower-emissions conventional fuel with a major role in the transition to a lower carbon future.

"Woodside does not support the application of a carbon price to our trade-exposed exports at a time our competitors do not face such costs," he said.

"Placing a carbon price on Australian LNG risks two outcomes. Customers either look past Australia for cheaper supplies of LNG produced by countries which do not have a carbon price, or they continue to use higher-emitting energy sources such as coal."

Mr Chaney ended speculation that he may announce a replacement for chief executive Don Voelte at today's meeting.
He said the Woodside board had yet to decide on a replacement for Mr Voelte, who is attending his eighth and final Woodside AGM after announcing last year that he would retire during 2011.

The board hoped to announce a successful candidate before June 30, Mr Chaney said.

Mr Voelte told shareholders that joining Woodside seven years ago was "one of the great decisions of my life".

But he took a swipe at the East Timor government over its opposition to a Woodside-led floating LNG development for the Sunrise LNG project in the Timor Sea.

Mr Voelte came close to tears as he farewelled shareholders and described how he had helped build Woodside's "can do" culture.

He said Woodside was "proudly Australian" and he hoped it would remain that way - a reference to speculation that the Perth-based explorer could be taken over by a multinational when key shareholder Royal Dutch Shell sells down its remaining 24.3 per cent stake in the company.

Mr Voelte received a rousing reception from 200 shareholders at the end of his address.

Mr Chaney said Woodside continued to see a robust market for LNG for at least the next 15 years, with the global market to grow from about 210 million tonnes in 2010 to total demand of up to 460 million tonnes by 2025.

Growth would be underpinned by global population growth and improved standards of living especially in key Asia-Pacific markets.

"While the markets of Japan and South Korea will continue to be the core of the region's LNG market, growth will come from Taiwan, China, India and new entrants such as Singapore, Thailand and Vietnam."

"Malaysia and Indonesia, better known as suppliers of LNG, will also become customers in the next few years."---