This week in energy: a new LNG terminal in Korea, Vietnam's coal challenge and a shipping CCS first for Japan

Each week, the Asia Natural Gas and Energy Association (ANGEA) compiles a selection of 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-focused. But we also look further afield, knowing that developments, trends and technology from around the world also have an impact across our region.?

South Korea commissions new LNG terminal

The already significant role of natural gas in South Korea's economy is set to expand even further over the next decade, with up to 11 new LNG import terminals set to be built and enter operation.

One of them - the Korea Energy Terminal in Ulsan, a joint project of SK Gas and Korea National Oil Company - took delivery of a trial LNG cargo this week.

The terminal is located near the Ulsan GPS, a combined-cycle power plant that will be the first capable of using LNG and LPG as fuels. The plant is set to start operating in 2024.

Read more: https://bit.ly/3UwFQQy

The Quarterly Q&A - with ANGEA CEO Paul Everingham

In the April 2024 instalment of this quarterly series, our CEO? Paul Everingham reflects on recent travels in the US, ongoing discussions about the LNG export approvals pause, CERAWeek 2024, the gas industry landscape in Australia and the months ahead for ANGEA.

Of particular note are his observations on similarities and differences around the understanding and appreciation of gas in both the US and Australia:

"Most people in both Australia and the US would be generally aware that their countries export LNG to Asia. But wider understanding of what that gas is used for, why it is needed by different nations in Asia and what the alternatives are, remains a work in progress."

Read the full interview: https://bit.ly/3W0JumZ

Call for more coal highlights Vietnam's energy challenge

Vietnam is urging coal miners to maximise production before the hot summer months to enable the country to meet soaring power use.

It's another example of the tough balance faced by emerging nations in Asia, with Vietnam having long-term aspirations to boost gas use but also currently strongly reliant on coal for generation.

Summer blackouts and the availability of coal as a long-standing source of energy security highlight the need for countries like Vietnam to have affordable access to gas - both domestic production and LNG imports - as they look to transition their energy systems.

Read more: https://yhoo.it/4aW5mVu

More low-carbon announcements from JERA

It's been a busy month on the decarbonisation front for ANGEA member company JERA Co., Inc. , with an ammonia co-firing trial in Hekinan flanked by a variety of other announcements.

JERA announced in mid-April that was it was launching JERA Nex, a new global renewable energy business that will develop, invest in, own and operate a range of renewable energy assets, including offshore and onshore wind, solar and battery storage.?

JERA has signed a joint development agreement with CF Industries around low carbon ammonia production in the US. Under the terms of the agreement, JERA will contemplate a 48 per cent ownership stake in a production facility in Louisiana with annual capacity of 1.4 million tonnes of low-carbon ammonia. JERA could also procure 500,000 tonnes of ammonia per year.

JERA is also eyeing green hydrogen production in Paradip in the state of Odisha in eastern India through an agreement with decarbonisation solutions provider ReNew. The project resulting from the partnership could produce up to 100,000 tonnes of green ammonia annually for use in Japan.

Read more: https://bit.ly/3UGIiV3

Carbon capture and storage: the upside and the lowdown

In the April edition of his Energy Diary, ANGEA Senior Advisor Neil Theobald explores carbon capture and storage (CCS) - a decarbonisation tool that plenty of people will have heard of but which many may not know much about.

As Neil writes, the technology involved in CCS isn't actually all that new. It's also proven from a scientific perspective, which should assist the widespread rollout required to meet Asia's decarbonisation needs.

Read the full blog at: https://bit.ly/3Q88NzW

Access all editions of the Energy Diary: https://bit.ly/4deKmdN

A Japanese maritime first for CCS

On the subject of CCS, some exciting news during the week with ANGEA member company Mitsui O.S.K. Lines, Ltd. confirming that its long range product tanker, Nexus Victoria, will become the first Japanese ship to have a commercially installed carbon capture system.

The system will remove sulphur oxides and particulates from exhaust gases and also capture a portion of CO2 from exhaust emissions.

Decarbonising the maritime sector is an important part of the global pathway to net zero. Currently shipping accounts for around 3 per cent of global emissions - equivalent to a country like Germany - but unchecked this could grow to as much as 17 per cent by 2050.

Read more: https://bit.ly/3xYrjEo

Significant milestone for Australian LNG project

Congratulations to our member company 康菲石油公司 on the 1000th cargo leaving the Australia Pacific LNG export terminal in Queensland - a significant milestone for a project that helps provide domestic energy solutions while also meeting Asian gas demand.

Since shipping its first LNG in January 2016, Australia Pacific has supplied 3700 petajoules to international customers, while providing 2100 petajoules to the Australian market.

The success of the project highlights how investment in future Australian gas production can provide the best of both worlds - a topic also explored by ANGEA CEO Paul Everingham in a recent op-ed.

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.

To learn more about ANGEA and the work we were doing in Asia Pacific, visit our website: https://angeassociation.com/