This week in energy: Thailand eyes energy security, talking CCS in Indonesia and major American developments

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 seven days. 

Thailand looks to shore up energy security
Maximising use of domestic resources is one way in which gas-producing nations in Asia can make progress on energy security ambitions – and Thailand certainly fits that brief. 

It’s great to see nation upstream company PTTEP continuing to work towards doubling gas production from its G1/61 assets by 2024, as well as pursuing new discoveries that could be fast-tracked to production. 

Gas has a long-time role as the primary source of electricity generation in Thailand, which in turn provides a strong basis for the country’s 2050 carbon neutrality aspirations. 

Read more: https://bit.ly/3Yf5Os8 

ConocoPhillips strikes Asian-facing deal
ANGEA member company ConocoPhillips this week announced a significant 20-year deal to receive 2.2 million tons of LNG each year from Mexico Pacific’s Saguaro export facility. 

Much of the LNG is likely to head to Asia, taking advantage of a shorter shipping route that bypasses the Panama Canal. 

Securing such long-term future supply is vital for countries in Asia which want to move away from coal reliance to LNG-fired power, and also for nations that currently use gas but which may have declining domestic resources. 

Read more: https://bit.ly/3qio2MY 

Key approval for another big American LNG facility
We’ve charted the rise (and rise) of the US LNG industry elsewhere on this website and it was pleasing this week to see ANGEA member company Venture Global LNG get the environmental go-ahead for the Calcasieu Pass 2 (CP2) project in Louisiana. 

Final investment decision on the project is expected later this year. But it has the capacity to make strong contributions to Asian markets, with about 9.25 million tonnes per annum of Calcasieu Pass 2’s 20 mtpa nameplate capacity alreading having been sold under 20-year sales and purchase agreements, including to fellow ANGEA members ChevronExxonMobil and JERA. 

Read more: https://bit.ly/453Pflh  

 The gas world is headed to Singapore!
Less than a month now until Gastech arrives in Singapore, bringing with it delegates from around the world, representing the full spectrum of the gas supply chain. 

ANGEA will be hosting an executive suite and CEO Paul Everingham will be part of a strategic conference panel session. Many other ANGEA members and partners feature on the agenda, including three of the co-hosts: ExxonMobil, Chevron and Venture Global LNG. 

As Paul said in a pre-event media release:

“Successful energy transition in Asia relies on collaboration across borders. It’s fantastic to have an event like Gastech in Singapore, bringing together global stakeholders to discuss opportunities in energy transition, including bilateral trade initiatives that can be facilitated by 16 international country pavilions.” 

We look forward to seeing you there!

Read more: https://bit.ly/3rT6gjH 

Talking carbon capture and storage in Indonesia
Carbon capture and storage (CCS) is an absolutely critical technology for energy transition in Asia – and Indonesia, with its rapidly growing population and economy, is case in point. 

This week ANGEA, represented by CEO Paul Everingham and Senior Adviser Neil Theobald, had the great privilege of co-hosting a very informative and thought-provoking workshop in partnership with Indonesia’s Ministry of Energy and Mineral Resources. The session looked at opportunities for Indonesia to emerge as a CCS hub as part of its long-term pathway to carbon neutrality. 

We’re very grateful to the wide variety of people who spoke at the event and also the many attendees, for their interest and interaction with our speakers. Thanks also to all the parties who helped make the event possible, including  the Coordinating Ministry for Maritime and Investment Affairs, the Ministry of Environment and Forestry, the Fiscal Policy Agency, ExxonMobil, Chevron, the Global CCS Institute and Bower Group Asia. 

Check out ANGEA’s new CCS Whitepaper: https://bit.ly/3DCR2BZ 

Giant CCS project in Malaysia making progress
Speaking of CCS in Asia, Malaysia is one country that has been very open with its ambitions to build an industry around this emissions reduction technology. 

There was significant news on this front during the week, with the announcement that Japan’s Kawasaki Heavy Industries had received an order for a gas compressor that will form part of the Kasawari CCS project – not only set to become Malayia’s first off-shore CCS venture but also, reportedly, the world’s largest. 

Malaysian energy group Petronas is developing the project.

Read more: https://bit.ly/44d1ICt 

Plenty of energy news out of Singapore
The impending arrival of Gastech isn’t the only piece of energy news out of Singapore, with several articles catching our eye this week. 

Among them were a study examining the the benefits of carbon capture at waste-to-energy plants and the successful completion of methanol bunkering in Singapore – a milestone that will inform global best practice. 

But perhaps the weeks’s most notable Singapore news involved the Energy Market Authority (EMA) calling for proposals for a new gas-fired power plant to be built and operating by 2028. 

The call for bids not only underscores the established role gas plays as the source of nearly all Singapore’s electricity, it also highlights the bold energy transition planning made possible by a gas-backed economy. Operators putting forward proposals are also being asked to develop hydrogen and low-carbon solutions, reflecting the EMA’s forward-facing approach. 

Read more: https://bit.ly/3OE2hRc  

More gas deals in the offing for India
We’ve recently noted India’s work to secure the future gas supplies that will help it reduce reliance on coal and the world’s most populous nation was back in the new again during the week. 

This time it’s GAIL (formerly the Gas Authority of India Ltd) close to finalising a new 20-year supply agreement with Qatar for at least 1 million metric tons of LNG a year. 

India faces a sizeable task to achieve its 2070 net zero target but gas deals like this one show energy transition in action. 

Read more: https://reut.rs/3OjhEgh  

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.