This week in energy: big US hydrogen investment, Vietnam’s coal switch-out and Japan seeks diversity

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-focussed. But we also look further afield, knowing that developments, trends and technology from around the world also have an impact across our region.                

Here’s what has resonated over the past week. 

Massive US investment in hydrogen hubs
There was some very significant energy investment news out of the US on Friday, with the announcement that the Biden Government would invest $US7 billion in seven regional clean hydrogen hubs. 

Large parts of the program will be supported by carbon capture and storage (CCS) and it’s another considerable step forward for the global hydrogen economy. It’s pleasing to see several ANGEA companies involved, including ExxonMobil, Chevron, Mitsubishi Heavy Industries and Sempra Infrastructure. 

Read more: https://bit.ly/3ZTbMQl 

Vietnam coal switch-out momentum continues
Interesting developments from Vietnam, which has been planning for natural gas to take on a much larger role in its energy mix as it moves away from a reliance on coal. 

According to a report on Vietnam+, proponents of planned coal-fired power stations are experiencing difficulties in accessing funding and some of them are now turning their attention to converting those facilities to LNG power projects. 

Vietnam’s National Power Development Plan 8, unveiled in May, targets gas accounting for nearly 25 per cent of electricity generation by 2030. LNG imports, the first ever of which arrived in Vietnam in July, are critical to that plan. 

Read more: https://bit.ly/3RZL2f3  

Qatar gas expansion can help shape Asia’s energy landscape
Qater Energy recently broke ground on its massive North Field expansion, a project that will be critical to delivering additional gas supplies to global markets in the second half of this decade. 

The expansion will add 48 million tonnes per annum to North Field production – equivalent to more than 12 per cent of all LNG trade worldwide in 2022 – and much of it could be headed to Asia. 

Major customers in Japan, China, Thailand, India and also possibly Bangladesh are likely to seek cargoes from the project. 

Read more: https://bit.ly/3M1KktZ  

Gas gaining a foothold in India
Progress on energy transition in India is of great global interest, given it’s the most populous country in the world and remains strongly reliant on coal for electricity. 

There was some positive news during the week, with the International Energy Agency forecasting gas demand in India would grow 3 per cent in 2023 and that it would continue to grow at 6 per cent annually until 2026. 

Read more: https://bit.ly/3Qcu3F9 

Japan continues to diversify energy supply
The on-flow effects of Russian’s invasion of Ukraine are ongoing, with one off them being countries around the world – including Japan – seeking to diversify sources of energy supply.

In Japan’s case, as reported by Nikkei, major trading houses are looking to the likes of Qatar, Indonesia and Canada as components of a more diversified LNG supply structure. 

Diversifying future gas supply was a key recommendation of the Rystad Energy Study Into Energy Security In Southeast Asia. 

Read more: https://s.nikkei.com/3LSQwV4  

Samsung partners with major carbon capture players
In a positive development for Asia’s nascent carbon capture and storage (CCS) industry, major Korean company Samsung engineering is partnering with Canada’s Svante and the UK’s Carbon Clean on CCS technology. 

Collaborations like this will accelerate development of technology that will be crucial to achieving emissions reductions throughout Asia.

As we explored in our recent whitepaper, CCS is particularly important to Asia’s future because of the large, hard-to-abate industrial clusters located in our region.

Access the CCS Whitepaper: https://bit.ly/3DCR2BZ 

Read about Samsung’s partnerships: https://bit.ly/3RZD6KK  

Developing a carbon removal industry ‘on the fly’
Reuters’ Policy Watch section recently published a very enlightening story on the development of a global direct air capture industry, as part of a suite of tools to achieve emissions reductions. 

Removing CO2 that already exists in the atmosphere is increasingly seen as an important cog in decarbonisation efforts but the field of work is so new that proponents describe research and development as akin to “building the plane as we are flying with it.” 

Read more: https://reut.rs/46j2NtZ

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.