This week in energy: spotlight on US LNG and a boost for CCS in APAC

The Asia Natural Gas and Energy Association (ANGEA) regularly 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.?

US DOE publishes LNG study update

The US Department of Energy (DOE) this week published the update to study work on LNG exports that it commenced earlier this year following the announcement of an export approval pause.

From ANGEA’s perspective, it was disappointing to see the positive impact of US LNG exports on the energy transition in Asia largely going unheralded – with Energy Secretary Jennifer Granholm using a statement accompanying the study to suggest that growth in US LNG supply would displace renewable energy more so than coal.

As ANGEA CEO Paul Everingham countered in a statement responding to the study release:

“US LNG is not being used by emerging Asia as a replacement for investments in renewable energy. It is being used as a replacement for coal to provide energy security and reliable electricity, both of which actually support growth in renewable energy generation.”

Read ANGEA’s full statement: https://bit.ly/49H26NI

Research shows Asia’s coal use will surge without more US LNG supply

The release of the DOE study coincided with the launch of a far more positive S&P Global Study that looks at the impacts from the development of the US LNG industry over the past eight years.

It also came a little more than a fortnight after a Wood Mackenzie LNG Demand Study highlighted the dangers for Asia’s energy transition if planned and proposed US LNG projects did not proceed.

The Wood Mackenzie study, which was commissioned by ANGEA, found that a longer-term pause on LNG export approvals could result in Asia using 95 million tonnes of additional coal annually by 2035 (the equivalent of an extra 20 million cars on the road each year).

Learn more about the WoodMac study: https://bit.ly/41fPdIe

Vietnam: opportunities and challenges for a new LNG importer

In a very timely illustration of the energy situation for many emerging Asian economies, The Investor published an excellent piece this week looking closely at Vietnam’s LNG ambitions.

Currently reliant on coal for nearly half its power generation, Vietnam has strong ambitions for gas to become the country’s major source of energy security by 2030 to support strong expansion of renewable energy.

But, as outlined in the Investor article, for aspiration to become reality, Vietnam must negotiate obstacles related to its nascent LNG policy framework and ability to attract investment to fund LNG-to-power projects.

Amidst all that, there are the intertwined challenges of LNG supply and pricing, which are only sharpened by policy uncertainty around major exporters like the US and Australia.

Read the full article on Vietnam: https://bit.ly/3ZQmdVo

Creating a pathway for cross-border CCS in Asia

It’s been a big month for study releases by ANGEA – in the past few weeks we also published the outcomes of our Cross-Border CCS Study.

The CCS study involved a year of intensive engagement with governments and other key stakeholders in Asia Pacific and beyond, supported by our partners at Boston Consulting Group (BCG).

The result is a first-of-its-kind framework, which addresses some of the current policy and regulatory sticking points to advancing transboundary CO2 value chains. It can be used by governments as a resource to help guide negotiations for cross-border CCS agreements.

Nikkei Asia produced an excellent article covering the publication of the framework, while the full study can be accessed at the ANGEA website: https://bit.ly/3ObT1me

Chevron eyes new Australian CCS opportunities

ANGEA member company Chevron is looking at expanding its CCS capabilities, with the awarding of a greenhouse gas assessment permit off the Western Australian coastline.

The permitted 2222 sq km area is offshore from Barrow Island, where Chevron currently operates the Gorgon CCS project – the world’s largest.

The new permit, secured with joint venture partners Shell Australia and Mobil Australia Resources, could be used to decarbonise Chevron operations and also to potentially store third-party emissions.

Read more: https://bit.ly/41H3Vs1

Major Woodside project extension gets approval boost

In positive news for Asia, Woodside Energy's North West Shelf Project has received environmental approval from the Western Australian government for its extension project.

The NWS Project has been exporting LNG to Asia for 35 years and its extension will be important to advancing the Browse Project, which is Australia's largest untapped conventional gas resource.

The extension project will now progress to federal environmental approvals.

Read more: https://bit.ly/4flRfKi

Another US LNG export facility starts producing

Another ANGEA member company, Venture Global, had an exciting milestone to celebrate over the past fortnight – with its Plaquemines export facility in Louisiana achieving first LNG.

Only 30 months after FID, Plaquemines will become the eighth US LNG facility in production and will deliver cargoes to meet the energy needs of global markets, including Asia.

Read more: https://bit.ly/4gEqsde

About ANGEA

Based in Singapore, the Asia Natural Gas & Energy Association is an industry association with a membership that spans the full global gas value chain: from production, to transport, infrastructure, manufacturing, end users, and others. ANGEA works constructively with governments, society and industry throughout Asia, to build effective and integrated energy policies that meet each country’s climate objectives, while promoting national and regional economic sustainable growth.