ANGEA’s board members bring deep and diverse experience, strong knowledge of Asia’s energy landscape and impeccable character to guide our policy approach. This month we catch up with Margaret Rogacki from our member company ExxonMobil, to discuss the current state of the energy transition in Asia Pacific and how natural gas will help reduce emissions throughout the region.
How do you view the current state of the energy transition in Asia Pacific?
Asia Pacific is ramping up its energy transition efforts as countries in the region make significant strides to reduce greenhouse gas emissions and set ambitious net zero targets.
Home to more than half the world’s population and serving as an important engine for global economic growth, Asia Pacific’s energy transition is not just about cutting emissions, but also ensuring access to affordable energy that enables economic progress and enhances quality of life.
Increasing reliable energy supplies while decreasing emissions is not an either-or proposition. It is an “and” equation. We need to do both, utilising a broad set of solutions to meet the needs of both sides of the “and” equation.
What are the biggest challenges and opportunities in energy in Asia Pacific?
The challenges for the energy sector in Asia Pacific are tremendous and multifaceted. The energy system is vast and requires significant long-term investments for transformation. The challenge is further complicated by the region’s diverse energy landscape and the uneven distribution of energy resources.
However, this diversity also offers opportunities for countries in the region to work together in developing bespoke solutions to energy challenges. For instance, by leveraging the diverse energy resources and enhancing energy interconnectivity – such as linking gas supply and demand within the region – countries can build a more resilient, integrated energy framework to improve energy security.
Collaboration is key to Asia Pacific’s energy transition. It’s imperative that governments, industry and communities work together to initiate action and develop supportive policies. Thoughtfully-designed policies and regulatory frameworks are critical to enabling deployment of key technologies and solutions at the pace and scale required to support a low-carbon future.
How important is natural gas to Asia’s energy future?
Natural gas and liquefied natural gas (LNG) are critical to both meeting energy demand and reducing emissions.
At ExxonMobil, we see global natural gas demand growing by around 20% by 2050. And according to the newly released Wood Mackenzie study commissioned by ANGEA, Asia’s LNG demand is forecast to nearly double to 510 million tonnes per annum in 2050.
With the demand growth, there is a key role for natural gas in helping lower emissions by displacing high-emitting coal and supporting renewables. For example, generating power with LNG emits up to 60% fewer greenhouse emissions and results in significantly fewer pollutants than coal. Additionally, gas power generation is flexible and can complement renewable generation, ensuring grid stability with readily dispatchable power when it’s needed.
With advancements in technology, innovation and supportive policies, we also see great potential in integrating natural gas value chains with carbon capture and storage (CCS) to further reduce emissions and produce low-carbon fuels such as hydrogen that can help address the needs of hard-to-abate industrial sectors and commercial transportation.
How critical is it that Australia continues to be a reliable LNG supplier for Asia?
Australia has a crucial role as a long-standing energy trading partner for Asia.
The country’s LNG production is essential not only for the energy systems of Japan, China, India, and other existing markets, but it will also become increasingly important for emerging economies as countries look to reduce their reliance on coal-fired power and leverage gas and LNG as a cleaner alterative for lowering emissions.
Maintaining dependable LNG production from Australia helps meet the demand for LNG across the region, ensuring that LNG remains affordable, providing these countries the confidence needed to invest in LNG import and power facilities, and preventing them reverting to coal for power generation.
What contribution can ANGEA make to the success of the energy transition in Asia Pacific?
Achieving energy transition in Asia Pacific requires an unprecedented level of collaboration, technology development, and supportive public policy. This is where ANGEA can make a significant impact.
ANGEA members have expertise across the energy industry lifecycle, from development and production to transport, distribution and storage. By leveraging these extensive capabilities and experience, ANGEA facilitates dialogue and collaborations among governments, industry and society to develop effective energy solutions and build integrated, supportive policies that can accelerate the transition.
ANGEA has also an important role to play in helping people better understand the complexities of the energy sector. Addressing multifaceted, large-scale challenges like the energy transition requires an inclusive approach that keeps all viable solutions on the table. We must balance many factors while acknowledging differing priorities and political dynamics. By fostering understanding and awareness, we can bridge gaps, align diverse interests, and find common ground as we navigate the critical journey together.
Margaret Rogacki is ExxonMobil’s Director – Australia LNG and manages the company’s interest in the Gorgon venture. She has more than 25 years’ experience working with ExxonMobil in the oil and gas industry.
ANGEA is an industry association representing LNG and natural gas producers, energy buyers, suppliers and companies in APAC. Based in Singapore, it works in partnership with governments and societies across the region to deliver reliable and secure energy solutions that achieve national economic, energy security, social and environmental objectives and meet global climate goals.
