This week in energy: dual milestones for Vietnam, more long-term gas deals and good news from North America
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.
Dual milestones in Vietnam
Vietnam continued its momentum towards a gas-fired power future, with a couple of key announcements this week.
The first was the official inauguration of the Thi Vai LNG receiving terminal, which currently has storage for 1 million tonnes of LNG a year, expanding to 3 million tonnes in future phases.
Pipelines, tankers and satellite warehouses are then used to distribute LNG to customers.
Read more: https://bit.ly/47cHPNp
Vietnam also announced this week that the long-awaited Block B-O Mon Gas-Power Chain Project would finally go ahead.
Two decades in the making, the project will proceed at a budget of $12 billion and will be Vietnam’s biggest gas-to-power project of its kind.
Read more: https://bit.ly/3Sn5hUf
The National Power Development Plan VIII announced earlier in the year forecasts a much bigger role for gas in Vietnam’s economy, helping the country reduce its reliance on coal and supporting growing investment in renewables.
Australian challenges again highlighted
We looked at challenges in the Australian legislation arena recently in this column and an opinion article during the week from Meg O’Neill (CEO of ANGEA member company Woodside Energy) has again laid bare some of the challenges with getting projects off the ground in a long-time energy-producing jurisdiction.
O’Neill’s article, published in Sydney’s Daily Telegraph, described “serious concerns about the ability of any offshore industry to conduct future activities in Australia.”
And these aren’t just domestic concerns – with Australia being such a key supplier of Asia’s energy , particularly the LNG that is central to energy transition, challenges there are also strongly felt in our region.
WA Premier talks up LNG’s importance
On a positive note from Australia, Western Australian Premier Roger Cook was in Japan during the week and spoke very positively about the critical role in Asia of LNG produced by his state.
Japan was the first customer for WA’s then emerging LNG industry in 1989 and Premier Cook this week noted the value it continued to hold as a fuel that was helping Asia decarbonise.
He noted that without affordable and available LNG supply, nations and industries in Asia would have to use more coal for a longer period of time.
Thailand chase for diversity continues
Sourcing gas from diverse sources is one of the more simple but effective ways in which countries in Asia can ensure their energy security over coming decades.
With that in mind, it’s positive to again read about Thailand’s plans to seek energy diversity, with national explorer and producer PTTEP targeting project development in the Middle East and Malaysia for future gas supply.
Thailand’s declining domestic gas reserves mean exploration and production elsewhere in Asia and in other parts of the world is important in helping sustain critical supply.
Read more: https://bit.ly/47cSLeJ
Long-term gas deals keep on coming
A couple more very notable long-term gas contracts have been announced over the past week – one in Europe and one in Asia, however both underscore the decades-long importance of gas to energy transition and both involve QatarEnergy.
The first of them is a 27-year deal for supply to Eni (and Italy) from the North Field East expansion under a sale and purchase deal.
Read more: https://bit.ly/3tTt5Vy
The second deal, also for 27 years, will see 3 million tonnes per year of LNG from the North Field South expansion delivered to Sinopec
Read more: https://bit.ly/473EtNd
As we’ve highlighted previously, Qatar’s giant North Field expansion projects (set to come online from the mid-2020s) are going to be critical to energy security and energy transition throughout Asia and, indeed, right around the world.
Freeport LNG approved for further restart in the US
Good news from the US this week, with Freeport LNG – one of the biggest LNG export terminals in the country – getting regulatory approval to take more steps towards returning to full operations.
The facility, which counts ANGEA member company JERA among its major investors, was shut between June 2022 and February 2023 because of a fire. A full restart would be timely ahead of the northern hemisphere winter.
Read more: https://bit.ly/3tL5MNs
We are proud to announce that #CoastalGasLink has achieved 100% pipe installation across the entire project route, connecting northeastern #BC to @lngcanada‘s facility on the west coast. Learn more in this month’s construction update: https://t.co/qiQVacqszT#LNGinBC #BCPoli
— Coastal GasLink (@CoastalGasLink) October 30, 2023
Another piece of the puzzle in place in Canada
There was a milestone announcement in Canada this week, with the connection of the final piping for the Coastal GasLink Pipeline.
The Pipeline covers 670km and will deliver gas to the LNG Canada facility, the biggest private sector construction project in Canada’s history.
First gas from LNG Canada in the next two years will mark Canada’s entry into global exporting markets, with its western ports offering an attractive shipping route direct to Asia.
Read more: https://bit.ly/499CfgG
Australia-Korea project to showcase future energy collaboration
Australian exploration and production company Pilot Energy Limited will team up with Korea’s Samsung C&T Corporation on a project in Western Australia that incorporates a number of sub-projects – production of blue ammonia, storage of CO2 captured during that production and also carbon management for third parties.
It’s another step in the evolution of the long-standing energy trading relationship between Australia and Korea as new technologies and energies are developed.
Read more: https://bit.ly/3MuQuTx
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.