This week in energy: Asia’s growing gas demand on the agenda

Each week, the Asia Natural Gas and Energy Association (ANGEA) compiles stories from the energy world that have caught our eye.                            

Given the region in which we operate – and our purpose – this collection of content is largely Asia-focused. But we also look further afield, knowing that developments, trends and technology from around the world also have an impact across our region. 

JERA invests significantly in Australian project
For the second time in six months there has been a very significant Japanese investment in Woodside Energy’s Scarborough Gas Project – both times involving fellow ANGEA members. 

After LNG Japan bought a 10 per cent stake in the project in August, JERA has now followed suit with a $US1.4 billion investment for a 15.1 per cent stake. Additionally, JERA has agreed to buy six cargoes a year for a 10-year period from Woodside’s broader LNG portfolio, starting in 2026. 

It’s another significant pointer towards not only the critical nature of LNG to energy security and energy transition in Japan (and, more broadly, in Asia) but also the vital and ongoing importance of Australian gas for our region. 

Read more: https://reut.rs/3wscHfV 

Indian gas demand to triple to 2050
Some very interesting data released by the US Energy Information Administration (EIA) over the past fortnight, with India’s gas demand forecast to triple over the next three decades. 

In addition to a growing role in power generation in a currently coal-reliant country, gas is a key feedstock for manufacturing of petrochemicals and fertilisers, the latter of which support an agricultural sector that is a central pillar of India’s economy. 

The EIA’s projections for India are further reinforcement of the need for gas-producing countries around the world to continue to bring on future supply that will be required to meet Asia’s needs. 

Read more: https://bit.ly/3UH1wKj 

New research puts focus on Asian energy transition
In keeping with a common theme to start this article, global consultancy firm and energy specialists Wood Mackenzie over the past week released its Asia Pacific Energy Transition Outlook – forecasting half of all global low carbon technologies would be in our region by 2050. 

Against that backdrop, Asia will have a growing need for gas for at least 15 years, and very likely much longer than that. Barring the emergence of some very significant and so-far undiscovered regional gas resources, this will necessitate an increase in LNG imports. 

Read more: https://bit.ly/3ORV2Vl  

Philippines eyes off another LNG delivery
The Philippines’ nascent LNG import industry looks set for another step forward, with First Gen’s Batangas facility seeking a cargo for delivery in March. 

The country is looking to LNG as an avenue to supplement declining domestic gas production and support the transition away from a strong reliance on coal for electricity generation. 

Two import terminals have entered operation in the past year, and for First Gen the March shipment would represent its fourth cargo, including an August delivery that was used for commissioning purposes. 

Read more: https://bit.ly/3wkuLJ0  

US LNG export approval causes headaches for Southeast Asia
ANGEA Senior Advisor Neil Theobald uses his Energy Diary for this month to explore the ramifications of the recently-announced pause on US LNG export approvals – in particularly the long-term impact it could have for emerging Asia. 

As Neil writes, Southeast Asian policymakers must strike an incredibly challenging balance of securing reasonably prices energy while also decarbonising their economies and managing supply chains that are vulnerable to political shocks. And now there is real uncertainty whether they will have US LNG to call upon as they attempt to move away from a dependence on coal that has spiked over the past two years. 

Read more: https://bit.ly/3uJiEVl 

Framing the US LNG situation in security terms
Former White House National Security Advisor General James Jones wrote a very insightful op-ed on the US LNG situation – one in which we were very grateful to have him reference ANGEA commentary on the issue. 

As General Jones notes, the pause and any potential future reductions in US LNG production bring concerns about national security, as well as challenges in energy security and energy transition for trading partners in Europe and Asia. 

“Measured in both security and climate objectives, America’s allies in Asia have much to lose as well.” 

Read more: https://bit.ly/3T05AUT 

 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.