Volatile Conditions Set Stage For 24th WGC

Probably there has never been a better time for the tri-annual World Gas Conference scheduled for Oct. 4-9 in Buenos Aires, Argentina.

Billions of dollars, rubles, pesos, yen, francs, pounds, etc. have been – and continue to be – invested in liquefied natural gas projects, the result of which has made natural gas into a global energy commodity.

But with progress come risks and challenges. The stunning economic downturn that has gripped the world has led to a glut of natural gas at a time when producers were spending record amounts on developing new sources of supply. The result has been a severe price crash that has caused natural gas – traditionally the most volatile of fuels – to become even more as prices continue to lag in the mid $3 range per million Btus with no change in sight. Yet this comes at a time when everyone wants to go “green”, and natural gas is the greenest of petroleum products.

What does this mean for new pipeline development? After years of unprecedented growth, construction is in a hiatus. But for how long? Tens of billions of dollars worth of new construction as well as expansions are sitting still, waiting for the go-ahead.

Many of these questions will be on the agenda when the world’s leading natural gas executives converge in Buenos Aires for the 24th World Gas Conference. No one can predict what short or long-term solutions will eventually emerge, but perhaps what is most important is that at least there will be discussion.

Heading up the conference is Eduardo Ojea Quintana, a lawyer who graduated from Universidad del Museo Social Argentino. Ojea Quintana began his career at Perez Companc S.A., where he eventually became General Counsel. In 1992, he was appointed Director of Legal, Regulatory and Public Affairs for Transportadora de Gas del Sur S.A. In March 1998, he became General Director of the company.

Ojea Quintana established his own practice in 2004. He advises investors and shareholders on energy issues; additionally, he sits on the boards of several oil and gas companies in Argentina and abroad.

Ojea Quintana has been actively involved in the energy industry throughout his career. He has been a member of the Chamber of Argentine Oil Companies (“Cámara de Empresas Petroleras Argentinas”), an executive member of Instituto Argentino del Petróleo y del Gas, the Argentine Business Alliance for Sustainable Development (“Consejo Empresario Argentino para el Desarrollo Sostenible”) and Centro de Estudios para la Actividad Regulatoria Energética. He served as the Argentine delegate on the International Gas Union Executive Committee and is Chairman of the Organizing Committee of the 24th World Gas Conference to be held in Argentina in 2009.

In an interview with P&GJ Ojea Quintana discussed his expectations for the conference.

P&GJ: How will attendance at the 24th WGC compare to previous events? Will it be affected by the global recession?