Oil giant, Vitol seeks future growth in gas and Liquefied Natural Gas (LNG) as emerging markets.
Steve Brann, Senior Investment Manager of Vitol, disclosed that LNG and gas, coupled with related asset acquisitions, will offer the best growth opportunities for the company as the world diversifies towards cleaner-burning fuels. The company believes that demand in oil for the next decade may likely decrease owing to alternative for oil across the globe.
According to him, “Our portfolio as a company will increasingly be gassy and asset-heavy and LNG is a means of moving that gas around the world. Africa is important and LNG in and around Africa is an important part of our growth strategy.”
Brann was of the view that Vitol had been in talks with producers in Nigeria to monetise flared natural gas while also looking to help industrial companies to switch fuel inputs, converting from diesel to trucked LNG or LPG. To show the company’s commitment, it has distributed LPG through trucks within the Nigeria.
Elsewhere, Vitol traded 7 million tonnes of LNG in 2017 and is looking to build LNG import terminals in Bangladesh and potentially Pakistan. The company is talking to other African countries like Equatorial Guinea to buy LNG supply.
This move will definitely enhance Vitol’s growth as it strategize for the future in case of eventuality, it will not be caught unawares as low demand for oil looms in the world. Hopefully, other multinationals may tow the same line with Vitol and embrace gas and LNG as alternative.