This week in energy: LNG’s ‘heroic era’, massive investment in Indonesia and Singapore’s energy future
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.
An ever-growing role for LNG
LNG has been shipped around the world for more than 60 years but Europe’s search for alternative sources of gas over the past two years has put this remarkable commodity in a brighter spotlight than ever.
There was some very interesting news over the past week related to growth in LNG, with the US Energy Information Administration projecting that North America’s export capacity would more-than double by 2027 and the Internation Energy Forum forecasting global trade to grow another 25 per cent over the next five years.
International Energy Forum secretary-general Joseph McMonigle made a strong point when he wrote about LNG’s role in energy transition in Arab News.
“Twelve years ago, the International Energy Agency asked the question: ‘Are we entering a golden age of gas?’ Today, one could ask the question: ‘Is LNG taking natural gas from a golden age into a heroic era?'”
Read more: https://bit.ly/47kM9L1
Is LNG Taking Natural Gas From A Golden Age Into A Heroic Era?
LNG saved Europe from a much more serious energy crisis & helped deliver gas to the developing world in Asia. Read my LinkedIn article on the new @IEF_Dialogue LNG report released today. https://t.co/xGSR3LqPdL
— IEF SG Joseph McMonigle (@ief_sg) November 15, 2023
ExxonMobil’s massive Indonesia investment
ANGEA’s member companies are deeply committed to supporting energy security and energy transition in Asia Pacific – and ExxonMobil’s investment plans for Indonesia’s energy future are reflective of this.
Indonesian President Joko Widodo, visiting San Francisco for the APEC Summit, said ExxonMobil planned to invest up to $US15 billion in his country, including a new petrochemical project and collaborations with state-owned PT Pertamina on a carbon capture and storage development in the Java Sea.
Read more: https://reut.rs/49IAjvO
ANGEA launches flagship project in San Francisco
Speaking of APEC, ANGEA was excited to have the opportunity to launch a flagship project on the sidelines of the CEO Summit.
The Asa Pacific Cross Border Carbon Accreditation Study is a multi-year program aimed at designing a regional framework for the accreditation of C02 emission reductions. It well help unlock investment for the cross border carbon capture and storage (CCS) value chains that will be required to achieve climate targets in the region.
Our launch featured addresses from Brad Crabtree (Assistant Secretary for Fossil Fuels and Carbon Management at the US Department of Energy) Irtiza Sayyed (President Asia Pacific – Low Carbon Solutions, ExxonMobil) and Asheesh Sastry (Head of Asia Pacific Energy Practice at Boston Consulting Group).
Boston Consulting Group is conducting a region-wide study as part of the program, which has already attracted significant international interest.
Read more: https://bit.ly/3MQ01oi
Singapore’s energy future – in words and pictures
It’s always interesting to see energy stories told in different ways and the Straits Times has certainly done that with a weekend feature on Singapore’s energy future.
Entitled “What could Singapore’s energy mix look like in 2035?” it uses a variety of data points to paint a fascinating picture (which complements a well-researched written story).
Of note, though use of natural gas in Singapore’s electricity generation is likely to decline from its current 96 per cent share, it will still account for more than half of the country’s power. in 2035. With LNG imports growing, gas will also be used in the production of low emission fuels such as hydrogen and ammonia.
Read more: https://bit.ly/40Opapw
Another LNG delivery imminent for the Philippines
Progress on energy transition in the Philippines continues apace, with a floating LNG import terminal in Batangas set to take delivery of its second cargo over the next five weeks.
The initial cargo to power producer First Gen’s facility in August allowed for commissioning of the terminal and was only the second shipment ever of LNG into the country.
Growth of gas-fired power in the Philippines is essential to the country’s energy transition, helping reduce reliance on coal-generated electricity while supporting large-scale investment in renewable energy.
Read more: https://bit.ly/47hH06D
Power producer First Gen has awarded a contract to energy trader @Trafigura to supply the second liquefied natural gas cargo to its #FSRU-based terminal in Batangas, Philippines. #lng #lngprime https://t.co/JUUI53aKfH pic.twitter.com/ZmoA2zBtdm
— LNG Prime (@LngPrime) November 17, 2023
Exciting carbon capture and storage news from Australia
Some good news during the week for our member company Santos Ltd and its joint venture partner Beach Energy Ltd, with the awarding of new storage acreage near the flagship Moomba CCS project.
Moomba, which is projected to be operational by the end of 2024, will have the potential to store 1.7 million tonnes of CO2 per annum and that capacity could grow with the additional acreage.
The development of a CCS industry in Australia is going to be vital for decarbonisation efforts in Asia, where many large economies will have the capability to capture emissions but not necessarily the geological formations required to storing them.
In keeping with that theme, Santos this week also entered into a memorandum of understanding with Korean energy company SK E&S around the development of a low-carbon hub in northern Australia and a transboundary business model to aggregate and transport CO2 from Korea to Australia for safe and secure storage underground.
Read more: https://bit.ly/40Jrqy6
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.