This week in energy: stronger ties to the south, LNG power on the high seas and a giant low carbon hydrogen facility on the horizon
Each Friday, the Asia Natural Gas and Energy Association (ANGEA) compiles stories from the energy world that have caught our eye over the course of the week.
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’s resonated over the past seven days…
Stronger ties to the south
Australia has long-held and extremely important ties to many Asian countries – with Western Australia, in particular, being a significant trade partner for the region over many decades.
Blessed with large resources of iron ore and natural gas, WA also has many commodities that are part of the “new energy” value chain and significant ambitions in hydrogen and ammonia production. WA Premier Mark McGowan was in Asia this week, where he signed a memorandum of understanding with the Japan Bank for International Cooperation and a letter of intent with the Republic of Korea’s Ministry of Trade, Industry and Energy – with both agreements centred on energy investment and low carbon technologies.
Read more: http://bit.ly/3kXUukB
A big year for energy transition in Asia and a pivotal role for ANGEA
OK, so we may have snuck a slight piece of self-promotion in here! But we do think this piece from ANGEA’s CEO Paul Everingham is an important one.
Paul uses his first blog post of the year to frame the global energy landscape and Asia’s position within it, highlight some of the opportunities ahead for energy transition across the region and reinforce the role he believes ANGEA can play in that process.
Read more: http://bit.ly/3HODZjM
Powered by LNG on the high seas
Exciting news with confirmation that Japan Marine United, the country’s second-largest shipbuilder, will start constructing vessels fuelled by liquefied natural gas.
Construction of the ships will begin at the company’s plant in Tsu, Mie prefecture, before the technology is deployed at plants in Kumamoto and Hiroshima prefectures. LNG-fuelled ships can reduce carbon dioxide emissions by about 25 per cent.
Read more: https://s.nikkei.com/405M62N
More LNG imports coming for the Philippines
The Philippines is one country ANGEA will be keeping a close eye on as energy transition continues to gather momentum across Asia.
Unlike some countries in the region, the Philippines has an indigenous gas resource. But the Malampaya gas field is in decline and will be depleted by 2027, which means if the country is going to move away from a reliance on coal and transition with gas, imports are going to be key. News this week of approval of a new LNG import terminal north of Manila – the seventh such one for the Philippines – is encouraging.
Read more: https://bit.ly/3DsMaj9
Giant low carbon hydrogen facility a step closer
All eyes will be on Baytown in Texas over the next five years, where ExxonMobil hopes to be running the world’s largest low carbon hydrogen production facility by 2027-28.
The plan is for the plant to eventually produce one billion cubic feet of hydrogen daily, along with a significant volume of ammonia, all while capturing and storing 98 per cent of the CO2 produced in the process.
Read more: http://bit.ly/3JwRSo8
🆕 Progress is being made and another contract has been signed to progress world’s largest low-carbon #hydrogen facility in Baytown, TX.
Our Texas facility plans to produce low-carbon #hydrogen for our customers and ourselves. Learn more: https://t.co/CdN9O6JfNT pic.twitter.com/xcuTo70EXh
— ExxonMobil (@exxonmobil) January 30, 2023
The case for carbon removal in green investment
There has been plenty of interesting media coverage of late around the role carbon removal/capture will play on the pathway to net zero. But this analysis piece from Bloomberg struck a chord, while presenting a variety of views on the topic.
“It’s important to note that all the pathways modelled to meet the Paris [climate] goal involve rapid emissions cuts and a scaling up of CDR.”
Read more: https://wapo.st/3wDKtvr
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.