Essays on Marketing Management - Gorgon Liquefied Natural Gas Case Study

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The paper 'Marketing Management - Gorgon Liquefied Natural Gas" is a great example of a management case study. Gorgon Liquefied Natural Gas (LNG) project is located in Western Australia at the northern Carnarvon basin. The project involves the development of the gas fields in Greater Gorgon, creation of subsea gas gathering infrastructure and coming up with an LNG plant on the Barrow Island. Natural gas has become a very important source of energy due to rapid pressure on the available hydrocarbons. Natural gas is less polluting due to its low level of CO2 emissions.

The gas can be transported over long distances and stored easily (Colombo et al. , 2010). Gorgon LNG project in Australia fourth LNG export development. Gorgon was discovered in 1981 and the first well was drilled. Later, several wells have been discovered and production of LNG started in 2014. Gorgon LNG project started is operated by Chevron who are wholly owned subsidiary of Chevron Australia PTY ltd (Wilkinson, 2008). This market analysis will look at the Gorgon project in Australia for LNG. The report will analyse the market situation through data on product, competition and distribution.

The report will then carry out a SWOT analysis, look at the objectives, marketing strategy. Lastly, the report will give a brief discussion of integrated marketing communication. Market situation The rapid growth in world population and urbanisation combined with the dwindling crude oil supply has led to an increase in demand for LNG (Theodoropoulos, 2010). Australia LNG from Gorgon filed presents a great possibility for Australia to be the main producer of LPG gas in the Asia Pacific Region. There has been an expansion of the world energy market and an increase in demand for clean energy.

The Gorgon project presents Australia with an opportunity to take a great share of the world LNG market. Australia has been the fourth-largest LNG exporter globally behind Qatar, Malaysia and Indonesia. In future, it is expected that Australia will overtake Qatar by the end of 2017 due to current ongoing projects (Wilkinson, 2008). Natural gas has been cited as the fuel for the future. The LNG market is the fastest-growing energy source worldwide. Competition By 2035, global consumption of LNG is expected to rise to 38%.

Most of LNG has been from the Middle East, Indonesia and Russia. In recent years, developments in LNG are expected to lead to more competition. Australia, Papua New Guinea and some parts of Africa have started LNG projects. Canada is also a major supplier with over 4000TCF. Globally, there are 18 LNG exporting countries and 25 importing countries (Theodoropoulos, 2010). At the moment, major LNG competitors are located in Algeria, Malaysia, Indonesia, and Qatar. The discovery of LNG in East Africa and the Eastern Mediterranean is set to compete with Australia for the global market. Distribution Between 2014 and 2020, it is expected that there will be more then 150mtpa of newly constructed floating LNG globally.

The number of countries producing LNG is also expected to increase. It is expected that by 2020, 23 new markets will join the LNG trade which will be a great boost to LNG (Douglas-Westwood (Firm), 2008). SWOT analysis for chevron LNG project Before concluding that Gorgon LNG project by chevron has a major market potential for LNG gas, it is vital to understand the environment they are operating in.

This will help in mapping the challenges that they may face. Carrying out a SWOT analysis will help in understanding both the internal and external environment.


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