This week in energy: future gas supply in the spotlight, Japan shores up energy security and new LNG online in Indonesia
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.
Potential gas supply gaps highlighted once again
One of the chief concerns for ANGEA and its member companies, along with the the countries and industries we work with, is addressing Asia Pacific’s gas needs for the future.
With the region expected to account for half of the world’s energy use by 2050 and many countries seeking gas to underpin energy transition, concerns about supply through the 2030s and decades that follow are very real.
Mitsui & Co President Kenichi Hori is the latest key figure to flag the issue publicly, telling Bloomberg:
“Announced projects in the world still won’t make up for the supply needed when considering the energy transition that will take several decades.”
Read more: https://bit.ly/3M5wqa6
Japan looks to the Middle East to shore up energy security
In a significant deal announced during the week, JERA Global Markets will spend between $US500 million and $US700 million on LNG supply from the United Arab Emirates’ ADNOC Gas.
The deal builds on a long-standing relationship, has the potential to further diversify LNG supply to Asia and underscores the Middle East’s role in the region’s energy security and transition.
Read more: https://bit.ly/3Q1pJY3
Similarly, Qatar LNG’s giant North Field expansion – set to come online mid-decade – also shapes as a major contributor to Asia’s energy landscape.
Customers in Japan, South Korea, China, India, Thailand and Bangladesh all shape as likely buyers of supply, with the potential for new importers such as Vietnam, the Philippines and Hong Kong to tap into a project that will add additional capacity equivalent to more than 12 per cent of all LNG trade worldwide in 2022.
Read more: https://bit.ly/3M1KktZ
Engage with the leading minds in energy at #SIEW2023 this October at the Singapore Energy Summit! Join the conversation with energy and industry leaders on the Energy Transition Towards a Net Zero World! Sign up now: https://t.co/fR2YQujfQS #NetZeroAtSIEW #ConferenceoftheYear pic.twitter.com/8NV1doHt6u
— SingaporeInternationalEnergyWeek (@SIEW_sg) September 22, 2023
ANGEA looking forward to Singapore International Energy Week
Singapore International Energy Week is a great opportunity to talk through key issues in Asian energy and the Asia Natural Gas and Energy Association (ANGEA) is proud to be the SIEW Connect sponsor.
ANGEA CEO Paul Everingham was delighted to have the opportunity to reflect on Singapore’s vital global role in the energy industry, the event’s key theme of “Energy transition towards a Net Zero world” and also the critical nature of the development of carbon capture and storage (CCS) to Asia’s future.
Read Paul’s full interview at: https://bit.ly/3Q8w9Vo
Expansion of our Tangguh liquified natural gas (LNG) development in Indonesia is complete, marked by the start-up of production and the first shipment from our new Train 3 facility. 💪🇮🇩
— bp (@bp_plc) October 19, 2023
Tangguh LNG expansion up and running
A very welcome addition to LNG production in Asia this week, with the announcement that the third train at the Tangguh LNG facility in Indonesia is now operational.
It’s been a long journey for Tangguh, with a remote location and the COVID-19 pandemic contributing to more than 129 million worked hours of construction and delayed progress to production.
But the expansion has now shipped its first cargo and is ready to support State-Owned PLN as well as a range of Japanese partners in the project.
Read more: https://bit.ly/3tO3E7y
JERA, JGC collaborate on Indonesian CCS
Speaking of PLN, it’s great to see our member companies JERA and JGC supporting the Indonesian electricity company on carbon capture and storage (CCS), including at the Tambak Lorok gas-fired power plant.
As part of an MOU announced during the week, JERA will conduct market research related to CCS projects, evaluate feasibility, and research the legal system, while JGC will consider CCS storage technologies and estimate costs.
CCS is vital technology for Indonesia’s domestic decarbonisation aspirations and the country also has vast potential as a storage location for CO2 produced in other locations. The Government of Japan will subsidise study activities under the MOU.
Read more: https://bit.ly/45F4sZV
Global case for and challenges facing CCS highlighted once more
Staying – and finishing – with CCS, the critical nature of this technology as well as the need to accelerate its development has been highlighted by global energy research and consultancy company Wood Mackenzie.
Speaking at the company’s Carbon Capture, Utilisation and Storage conference in Houston, the company’s head of research in that area, Mhairidh Evans, noted the extremely significant investment that was required for the world to get to the 7 billion tonnes of capture required to meet net-zero goals in 2050.
Evans pointed out that a lack of clear regulatory frameworks was one potential barrier to CCS development, while the lack so far of announced or operating projects in Asia makes it clear how much work is required to fully realise this technology in our region.
Read more (and see a detailed geographic breakdown of projects) at: https://bit.ly/3S0TnPL
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.