This week in energy: milestone Singapore-Indonesia agreement, an LNG demand jump and a note on India Energy Week

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.   

An historic deal for Singapore and Indonesia
There was some extremely positive and impactful news out of Singapore and Indonesia this week, with the two countries signing a letter of intent for cross-border collaboration on carbon capture and storage (CCS). 

The agreement is the first since Indonesia announced Presidential Regulations that will allow CCS operators to allocate up to 30 per cent of their capacity to imported CO2. 

Without storage capacity of its own, Singapore will rely on cross-border CCS value chains to decarbonise its industrial and power generation emissions. 

Meanwhile, Indonesia is rapidly progressing CCS ambitions – partly to reduce domestic emissions but also to create new economic opportunities as a regional storage hub. 

The letter of intent has the potential to be a strong win for both countries. 

Read more: https://reut.rs/3uFiGO4 

Asia Pacific Cross Border Carbon Accreditation Study

Learn more about the major, multi-year project that will design a regional framework for cross border CCS.

LNG demand could grow more than 50 per cent by 2040
Shell has released its annual LNG Market Outlook, with projections that global LNG demand is set to more-than double by 2040. 

Although demand for gas has already peaked in some parts of the world, the Market Outlook notes continued strong growth in Asia that will drive increasing LNG demand into the 2030s and beyond. 

With South and Southeast Asian domestic gas production set to decline in the same timeframe, it’s another strong indication of the need for gas-producing countries around the world to bring on future projects that will supply LNG over coming decades. 

Read more: https://reut.rs/49coVIf 

US pause doesn’t align with demand projections
The US Chamber of Commerce’s Global Energy Institute published some excellent insights this week around the current US LNG export approvals pause and its contradiction with many reputable gas demand projections. 

As the story notes, a majority of projections for non-US gas demand to 2050 – from the US Energy Information Administration, Japan’s Institute for Energy Economics and the BP Energy Outlook – would all require much more LNG production rather than less. 

With even the International Energy Agency’s “STEPS” projection forecasting a steady increase in non-US gas demand, the US Government’s recently announced pause on pending LNG export approvals would seem to be at odds with the data. 

Read more: https://bit.ly/3I50mRi 

ANGEA’s statement on the US LNG export situation
As a body that represents companies from all parts of the gas supply chain and which works closely with countries in Asia Pacific on their energy needs and plans, the US LNG export approvals pause is of great relevance to ANGEA. 

Our view is that US LNG exports are a critical part of energy systems across Asia Pacific and are needed to provide energy security and support energy transition for decades to come.  

The pause – and any potential changes to the permitting process – has the potential to have a profound and long-term negative impact on our region and the communities and economies within it. 

Read the full ANGEA statement: https://bit.ly/49isMU4 

A focus on LNG at India Energy Week
ANGEA had the opportunity to attend India Energy Week in Goa and it was most encouraging to note the level of discussion around LNG and its ever-growing role in the country’s energy mix. 

Equally relevantly, however, those discussions also came with questions marks around availability and affordability – again, a pointer towards the challenges associated with uncertain policy environments in major gas-producing nations like the US and Australia. 

The completion of India Energy Week coincided with the US Energy Information Administration releasing a projection that India’s gas demand will triple by 2050, with the industrial sector a major driver.

Read more: https://bit.ly/3wknzwa  

Woodside’s Scarborough project continues to take shape
ANGEA member company Woodside Energy has provided a pleasing update on progress on the Scarborough Project off the Western Australian coast. 

The project has now achieved its first dry dock departure – as Woodside said, officially putting the “F” in Floating Production Unit (FPU). 

Scarborough, which is targeting first LNG production in 2026, will unlock a major new source of gas supply for Asia. 

 

A closer look at carbon capture and shipping
The maritime industry is a key focus of global decarbonisation efforts, given it currently accounts for around three per cent of emissions (the equivalent of a country such as Germany) and could rise to as much as 17 per cent by 2050 if unchecked. 

Carbon capture is one possible part of the solution and has recently been tested on a container ship in the Persian Gulf. 

As an article in NewScientist explains, employing CCCS (or CCUS) at sea brings some logistical challenges but the technology is showing potential. 

Read more: https://bit.ly/4bE3LEq  

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.