The LNG industry is at a pivotal juncture. As global demand for cleaner energy sources accelerates, LNG has emerged as a key component in the transition towards a low-carbon future.

The International Energy Agency projects that global LNG demand could reach 585 million metric tons per year by 2040, a substantial increase from the 360 million metric tons recorded in 2020. However, this rapid growth has also exposed a significant challenge: a pronounced shortage of skilled professionals across the LNG value chain. This skills deficit not only threatens to constrain the industry’s growth but also poses risks to the global energy transition. Addressing this shortage requires a comprehensive and coordinated effort involving industry stakeholders, educational institutions, and governments. 

Organizations like Petroplan also have their role to play. Petroplan and other recruiting companies can play a vital role in addressing the skills shortage by efficiently matching specialized talent with the needs of projects. Expertise in sourcing qualified professionals and getting them where they’re needed is always helpful to individual customers. But how do we go a stage further and support the overall growth of the industry, and LNG’s ability to find a sustainable solution that can deliver the necessary skills in the years ahead. 

The Scope and Impact of the Skills Shortage

The skills shortage in the LNG industry is both extensive and multifaceted, affecting every stage of the value chain—from upstream exploration and production to midstream processing and downstream distribution. According to a report by the Global Energy Talent Index (GETI) in 2023, the energy sector is experiencing a significant skills gap, with 48% of respondents citing a lack of skilled professionals as one of the top challenges facing the industry. In the LNG sector specifically, the shortage is exacerbated by several key factors:

Aging Workforce
A considerable portion of the LNG workforce is approaching retirement age. The same GETI report highlighted that approximately 27% of the energy workforce is over the age of 55. As these experienced professionals retire, their departure creates a significant knowledge gap, particularly in specialized areas such as LNG plant operation, maintenance, and project management.

Technological Advancements
The LNG industry is increasingly adopting advanced technologies, including predictive maintenance systems. These technologies require a new set of skills that are in short supply. A McKinsey & Company study in 2022 noted that 60% of energy executives believe that the pace of technological change is outstripping the ability of educational institutions to produce graduates with the necessary expertise.

Global Competition for Talent
The LNG industry is not isolated in its struggle for talent. Sectors such as renewable energy, oil and gas, and technology are also vying for a limited pool of skilled professionals. The International Renewable Energy Agency (IRENA) estimates that the global energy transition could create up to 42 million new jobs by 2050, intensifying competition for skilled workers. This competition drives up wages and makes it increasingly challenging for LNG companies to attract and retain talent.

Geographic and Logistical Challenges
LNG projects are often located in challenging staffing environments, such as undesirable or remote areas. Recruiting workers willing to relocate to these locations can be difficult, and the local labor market within reach lacks the necessary skills in this emerging market. A report by the Oxford Institute for Energy Studies highlighted that the localization of LNG workforce in some regions fails to meet the required skill levels, necessitating the recruitment of international talent at higher costs.

Strategic Approaches to Overcoming the Skills Shortage

Addressing the skills shortage in the LNG industry necessitates a multi-pronged approach that encompasses education, training, technological innovation, and international collaboration. The following strategies offer a path forward:

Investing in Education and Training

Educational Partnerships
Several LNG companies are collaborating with universities, technical schools, and vocational training centers to develop specialized curricula that align with industry needs. 

Internships and Scholarships
LNG operators have seen success in securing talent through internships. For example, Golden Pass LNG offers scholarships that cover up to three years of LNG process education. 

Attracting and Retaining Younger Talent

Career Promotion
The industry needs to enhance its appeal to younger generations by emphasizing its role in the global energy transition. According to a Deloitte survey, 58% of millennials consider a company’s commitment to sustainability when choosing an employer. LNG companies should highlight their contributions to reducing carbon emissions and their use of cutting-edge technologies in marketing campaigns, career fairs, and outreach programs.

Mentorship and Career Development
Establishing robust mentorship programs can facilitate knowledge transfer from retiring professionals to younger employees. A study by the American Society for Training and Development (ASTD) found that employees with mentors are five times more likely to advance in their careers. These programs not only enhance skill development but also improve employee retention by fostering a supportive work environment.

Leveraging Technological Innovation

Automation and Digitalization
While the skills shortage presents challenges, it also drives innovation. Automation and artificial intelligence (AI) can alleviate some of the pressures by handling repetitive and complex tasks that would otherwise require highly skilled workers. The implementation of digital twins—virtual replicas of physical assets—can optimize LNG plant operations and maintenance, reducing the number of on-site personnel required.

Women in the Workforce

The Gender Imbalance
The LNG industry has historically struggled to approach a gender balance, with women making up only 22% of the energy workforce, according to the GETI report. To get closer to parity, employers need to rethink policies that support work-life balance, consider flexible work arrangements, and ensure equal opportunities for career advancement.

International Recruitment
Given the global nature of the LNG industry, recruiting internationally can help mitigate local skills shortages. However, this requires careful planning and support for relocating employees. According to a study by the World Economic Forum, cross-border labor mobility is essential for addressing global skills gaps, particularly in specialized industries like LNG.

Government and Industry Collaboration

Incentivizing Workforce Development
Governments can play a pivotal role by providing incentives for companies to invest in workforce development. For instance, tax credits, grants, and subsidies can encourage LNG companies to participate in training programs and educational partnerships. The U.S. Department of Energy’s Workforce Development for Teachers and Scientists (WDTS) program is an example of how government support can enhance skills development in the energy sector.

Standardizing Certifications
Establishing industry-wide standards and certifications for LNG professionals can ensure consistency in skill levels across the sector. 

Organizations like the American Petroleum Institute (API) and the International Association of Oil & Gas Producers (IOGP) can lead efforts to develop global certification programs that facilitate workforce mobility and ensure that workers possess the necessary qualifications.

By investing in education and training, attracting younger and more diverse talent, leveraging technological innovations, and fostering international collaboration, the LNG industry can build a sustainable workforce capable of supporting its growth and the global energy transition. The future of LNG—and by extension, the global energy landscape—depends on the ability to cultivate and maintain a skilled, adaptable, and forward-looking workforce.

Petroplan is rising to the challenge

At Petroplan, our commitment has always been to quality, safety, and getting the job done. 

Since our founding 1976, Petroplan has grown organically to meet the demands of our clients. Through expansion and growth in the last 25 years, Petroplan is strategically positioned as a significant partner for the energy sector.

In The Right Place at the Right Time 

Established in 2019, our Houston office is a hub of industry expertise and knowledge. We have spent the last 15 years developing and networking with organizations, professional associations and across the industry. Petroplan was already in place from the inception of the US LNG boom, and has matched the industry for growth at every step of the way.

We have worked hard to earn our position as a provider of choice to operators along the Gulf Coast and other locations in North America. We have further expanded our provision of hiring and employment services in Mexico, so that we are ready to move when our clients need us.

SOLVING THE SKILLS SHORTAGE CHALLENGE IN LNG

How Petroplan has Built a Deep Network of Qualified Candidates

Just as experience matters on projects, experience and subject matter expertise is essential in the recruitment sector too. The average experience of our Recruitment Consultants is over 7 years. 
Across our team that adds up to decades of investment in candidate and client relationships. This has meant supporting professionals through the transition from construction or oil and gas, to specific roles in the LNG sector. Our access to qualified SMEs and market leadingexperts is unparalleled.

Access to an International Hiring Pool

Petroplan has multiple locations across the world, including key LNG hubs. Our recruitment teams are led by experienced and dedicated leaders, with knowledge sharing processes and shared technology platforms. 
When you are hiring through Petroplan, you are reaching a much greater pool of talent because of our breadth and global reach.

Overcoming Geographic and Logistical Challenges

Identifying the perfect candidate is just the first step of Petroplan’s commitment to getting the job done. 
Our Global Mobility expertise is second to none, with a dedicated team onsite in Houston, and Visa experts around the world. Regardless of where we found your perfect hire, we will get them to where you need them – fast.

Your Specialized Expert for Mexico

When it comes to locations that are typically challenging places for employment, Petroplan has you covered. For example, in Mexico our knowledge of labor laws, regulations and immigration processes means hiring for Mexico is straightforward. We take care of the detail – visa appointments, interview prep, accommodation, severance and bonus contracts, transport, etc. – so that you and your hire can focus on the project.

Petroplan has access to experienced candidates with the skills and experience to meet the demand for talent in the LNG industry. 

Discover how Petroplan can overcome your hiring challenges.

Contact: Sam Erickson, Business Manager
Office:    (+1) 254 203 7905
Cell:        (+1) 832 288 1979
Email:     Sam.Erickson@petroplan.com