This week in energy: gas focus in Singapore, regulatory challenges in Australia and positive news 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.
Energy transition in focus in Singapore
It was great to have another major energy gathering in Singapore last week in the shape of Singapore International Energy Week (SIEW) – an event which ANGEA was delighted to sponsor and support.
As was the case with Gastech in September, SIEW highlighted the critical role that natural gas will play in supporting both economic growth and progress on climate targets during decades-long energy transition in Asia.
Speaking during a session on the Energy Transition Roadmap, Robert Lorato, Director and Chief Executive Officer, MedcoEnergi, put it this way: “in order to catch up with the more developed world, we are going to see a massive increase in energy demand. The role of fossil fuels in Southeast Asia will be more relevant and more important for more years than other countries.”
Read more on the energy transition discussion at SIEW: https://bit.ly/3tOL67j
Singapore aims for second LNG terminal by 2030
In a perfectly timed announcement at Singapore International Energy Week, Singapore LNG Corporation has been given approval to press ahead with the country’s second LNG import terminal.
The exact form of the terminal is still be determined – it could be an on-shore or a floating facility – but its approval underscores the central role of natural gas in Singapore’s current and future economy, as well the diversity of supply advantages that LNG can provide.
Read more: https://bit.ly/3rXVadQ
New Australian report puts spotlight on regulatory challenges
Even with greater global acceptance for the role of ongoing gas in energy systems, there is still the challenge of further growing understanding and awareness in gas-producing countries of the importance of their LNG production to energy transition elsewhere.
It was interesting to read this week a new report from the Chamber of Commerce and Industry of Western Australia, about some of the regulatory challenges being experienced in Australia.
Australia – and Western Australia in particular – has a long history as a reliable energy trading partner for Asia but environmental approval processes that are currently running up to four years in some instances have the potential to stifle future investment.
Gas projects that don’t go ahead in Australia will not only impact energy security domestically but also reduce the supply options for Asian countries that looking to move away from coal in electricity generation.
Read more: https://bit.ly/3tUu4EL
— Natural Gas World (@NatGasWorld) October 26, 2023
Bangladesh signs new long-term LNG deal
Some very positive news out of Bangladesh this week, with the approval of a 15-year LNG supply deal with US company Excelerate.
Bangladesh, which has limited options for solar power because of land constraints, uses natural gas to generate most of its electricity but often has to buy LNG on the spot market and its ability to afford to do so was heavily impacted by the on-flow effects of Russia’s invasion of the Ukraine.
The Excelerate deal adds to a long-term agreement Bangladesh made in July to import LNG from Malaysia and the efforts of ANGEA member company Chevron to produce more gas off the country’s coastline. It also points to the benefits that floating storage regasification units – in which Excerate specialises – can have in providing countries with gas import facilities.
Read more: https://bit.ly/3QxiHM1
Eni bullish on Indonesian gas discovery
Italian gas company Eni is particularly enthusiastic about its recent gas find at the Geng North-1 discovery well off Indonesia and is already flagging the possibility it could combine with existing assets to form a production hub.
That may well be good news for other parts of Asia, with suggestions from Eni that some of its Indonesian LNG production – which could double overall with the new discovery – may be made available to other countries in the region.
Read more: https://bit.ly/49gbQy2
Major Indonesian mine moving to gas power
In another example of the coal-to-gas switching that will be essential to decarbonisation in Indonesia, the Grasberg mine in Papua – one of the biggest gold and copper mines in the world – will move to electricity powered by LNG, in an announcement made this week.
With an investment estimated at $US1 billion, the 265-megawatt gas-fired combined cycle gas turbine power plant is expected to be operational by 2027 and forecast to reduce the operations’ emissions by 60 per cent compared to 2018 levels.
Read more: https://bit.ly/3S8STal
@qatarenergy and @exxonmobil released the latest construction update for their giant Golden Pass #LNG export plant on the US Gulf Coast near Sabine Pass, Texas. #lngprime https://t.co/NN4VlktqHz pic.twitter.com/VneX6h3mgA
— LNG Prime (@LngPrime) October 24, 2023
Big US LNG project continues to make progress
One coming project that Asian LNG buyers will definitely be looking forward to is the Golden Pass LNG export facility in Texas.
The terminal is a joint venture between ANGEA member company ExxonMobil and QatarEnergy and a recent construction update noted that it remained on target for a 2024 start-up.
Thirty per cent of LNG volumes produced at the terminal will be marketed exclusively by ExxonMobil LNG Asia Pacific.
The Plaquemines facility in Louisiana – also being developed by an ANGEA member in Venture Global LNG – is another significant export terminal in the US set to begin production in 2024.
Read more: https://bit.ly/494Ha2y
A fascinating insight into the evolution of carbon capture and storage
The development of Asia’s nascent carbon capture and storage (CCS) industry is a high priority subject for ANGEA and its members and it was very interesting this week to read the perspective of long-time CCS expert Rob Berra.
Currently Worley’s Senior Group Vice President CCUS, Rob has more than 30 years of energy infrastructure experience and has seen carbon capture evolve from an innovative (yet highly practical) concept to a tool that is going to be vital to global pathways to net zero.
Rob’s article on worldoil.com contains some excellent insights about CCS value chains in Asia and linkage between countries in the region which may have the ability to capture CO2 but not the capacity to store, and nations that have geological potential to be strong storage locations.
Read more: https://bit.ly/3Q8Q2LY
Japan’s ambitious CCS program – explained
CCS is at the heart of Japan’s ambition to become carbon neutral by 2050, with plans to be capturing and storing as much as 240 million tonnes of CO2 annually by the middle of the century.
A recent article in Mitsubishi Heavy Industries‘ excellent Spectra series charts progress on Japan’s development of CCS, including cross-border value chains that will be required for storage of CO2.
Read more: https://bit.ly/3MjMHbA
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.