This week in energy: a world-first for Japan, more LNG for Vietnam and the G7 Energy Ministers Meeting

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.?

A world-first for CO2 transportation in Asia

The EXCOOL (picture above) is poised to deliver another exciting milestone for CCS in Asia when it launches later this year.

Manufactured by Mitsubishi Shipbuilding - part of ANGEA member company Mitsubishi Heavy Industries - the vessel is set to become the first to transport CO2 on a?low-temperature and low-pressure liquefied carrier over 1000 km.

The success of this technology would be a significant boost for Japan's carbon capture and storage ambitions and also the commercialisation of CCS throughout Asia.

Read more: https://bit.ly/3WtGP5L

G7 again recognises contribution of gas to energy security

The G7 Ministers' Meeting on Climate, Energy and Environment was held in Turin this week and the subsequent communique again recognised the critical role that natural gas has played (and continues to play) in ensuring global energy security.

Reaffirming commitments from the G7 Leaders' Statement from Hiroshima in 2023, the communique noted:

"the important role that increased deliveries of LNG can play and acknowledge that investment in the sector can be appropriate in response to the current crisis [Russia's invasion of Ukraine) and to address potential gas market shortfalls provoked by the crisis."

Natural gas and LNG can also make long-standing and vital contributions to not only energy security in Asia but our region's energy transition.

Access to affordable and available LNG is particularly important for emerging economies in Asia, which seek to use gas as a much lower-emission alternative to the coal they currently rely on for electricity generation.

Read the full G7 Energy Meeting Communique at: https://bit.ly/4bhAD4L

Vietnam receives its third LNG delivery

Vietnam has taken its second LNG delivery in the last two months - and the third in its history - at the flagship Thi Vai terminal in the country's south-east.

The opening of Thi Vai last year was a major step towards Vietnam's goal of having LNG make up nearly 15% of its primary energy mix by 2030.

Increasing the share of gas in the energy mix to nearly 25% by the end of the decade is a major part of Vietnam's plans to reduce its current reliance on coal.

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

Another long-term LNG investment for Korea

Last week saw Korea commissioning a new LNG import terminal; this week national gas company Korea Gas Corporation(KOGAS) announced a fresh long-term LNG supply deal with bp .

The deal is in addition to an existing long-term sale and purchase agreement signed between the two companies in 2022 and will deliver up to 9.8 million tonnes of LNG over 11 years, starting in mid-2026.

Read more: https://bit.ly/44mAomJ

New lab in Singapore to explore decarbonisation technology

ANGEA member companies are strongly involved in advancing Asia's decarbonisation, the latest example being 埃克森美孚 's partnership with 新加坡南洋理工大学 and A*STAR - Agency for Science, Technology and Research to establish a new low-carbon lab in Singapore.

The facility will explore a variety of decarbonisation technologies and solutions, including conversion of biomass into lower-emission fuels, turning methane into low-carbon hydrogen and solid carbon materials, and a variety of carbon capture, utilisation and storage (CCUS) activities.

Read more: https://bit.ly/3JGyhk4

Why US LNG is more important than ever for Asia

In his latest website column, ANGEA CEO Paul Everingham reflects on the encouraging high-level messaging from recent Japan-US meetings but notes that these critical conversations need to continue.

"The US should maximise responsible LNG production and set a global standard, not constrain it."

Read the full article: https://bit.ly/3UiLd4D

Australian government acknowledges key roles for gas

Some welcome news out of Australia this week, with Climate Change and Energy Minister Chris Bowen speaking publicly about the importance of gas supply to both industrial processes and Australia's energy transition:

"Gas will play an important role in electricity by firming and peaking renewables.”

Continued investment in future gas projects and supply in Australia can address not just domestic energy requirements but LNG demand from Asia - including emerging nations looking to reduce coal use.

Read more: https://bit.ly/3QtLH73

How Europe addressed its Russian gas gap

A lengthy read but also a very interesting one that is worth a few spare minutes at the end of the week!

The Financial Times has published an in-depth feature about the flow-on effect of Russia's invasion of Ukraine to global gas and LNG markets and supply.

In particular, the piece highlights:

? how essential LNG (and particularly US LNG) has become to Europe since the invasion of Ukraine

? the importance of gas for steelmaking, fertiliser manufacturing, petrochemical processing and a range of other industrial activities.

? strong ongoing demand for LNG from both Asia and Europe, which will require significant investment in future projects in gas-producing nations.

Read more: https://on.ft.com/3w2R8Tz

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.