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October 2023

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Editorial comment

Gastech, which took place in Singapore last month, saw a record-breaking attendance of 44 957 energy industry professionals.1 There was an overwhelming sense of optimism, with many enthusiastic about the role of LNG in the decarbonisation equation.

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The importance of LNG as a source of energy has also been prevalent in news coming from the Middle East, particularly Qatar.

One of the most prominent pieces of news from the region is that of Qatargas changing its name to QatarEnergy LNG.2 This is in recognition of Qatar’s role in meeting the worlds growing need for energy, particularly natural gas, and reflects the company’s commitment to LNG as a vital source and enabler of the energy transition.

In line with this, Saad Sherida Al-Kaabi, Minister of State for Energy Affairs and President & CEO of QatarEnergy, has recently expressed a firm belief that “a balanced energy transition demands the incorporation of natural gas in our present and future energy,” and that “natural gas will be indispensable, especially given its reliability as a base-load source for many nations and for many years post-2050.”3 Al-Kaabi still acknowledges the vitality of renewables for the energy transition, but also stressed the importance of sustaining a robust baseload capacity using a source that is not reliant on weather in order to bolster energy security, bridge the energy poverty gap, and help move away from coal.

The growing demand for LNG will also require more LNG carriers. This has been a topic of concern for many analysts, following the rush for long-term LNG contracts after the Ukraine crisis resulted in a large number of ship orders that pushed yard capacity to its limit. However, QatarEnergy has also recently signed an agreement with Korea’s HD Hyundai Heavy Industries for the construction of 17 ultra-modern LNG carriers.4 The deal marks the start of the second phase of the company’s ship acquisition programme, which will support the North Field LNG expansion’s production capacity and Golden Pass LNG export project. The total number of confirmed new LNG vessels now stands at 77, following the 60 ships that were contracted by QatarEnergy in the first phase of the programme.4

QatarEnergy are also taking measures to decarbonise their own operations, having selected Worley to develop FEED for QatarEnergy LNG’s carbon dioxide sequestration project in Ras Laffan.5 Once completed (set for 2024), the sequestration facility will be capable of capturing 4.3 million tpy of carbon dioxide, helping to cut the company’s environmental impact across the LNG value chain by reducing emissions from the North’s seven LNG trains and South’s three LNG trains.

The importance of natural gas is also echoed by ADNOC Gas, which has signed a US$450 – US$550 million LNG supply agreement with PetroChina International.5 The agreement underscores the company’s growing presence in the East and South Asian markets and its commitment to ensuring reliable supply to customers.

With COP28 due to take place in Dubai from 30 November – 12 December 2023, which will deliver the first ever Global Stocktake (a comprehensive evaluation of progress against climate goals),6everyone – including the LNG industry – will be evaluating what they can do to reduce their environmental impact and reach emissions targets.

References

  1. ‘Record-breaking attendance at agenda-setting 2023 edition of Gastech’, Gastech Event, (8 September 2023), www.gastechevent.com/press-collection/press-release/2023/september/record-breaking-attendance-at-agenda-setting-2023-edition-of-gastech/
  2. ‘Qatargas changes name to QatarEnergy LNG’, QatarEnergy LNG, (14 September 2023), www.qatarenergylng.qa/english/MediaCenter/Pages/Press%20Releases/Qatargas-changes-name-to-%E2%80%9CQatarEnergy-LNG%E2%80%9D.aspx
  3. ‘H.E. Minister Al-KAABI: “Natural gas is vital for a balanced and realistic energy transition”’, QatarEnergy, (25 September 2023), www.qatarenergy.qa/en/MediaCenter/Pages/newsdetails.aspx?ItemId=3768
  4. ‘Supporting QatarEnergy LNG’s decarbonization ambitions through carbon sequestration’, Worley, (25 September 2023), www.worley.com/news-and-media/2023/supporting-qatarenergy-lng-carbon-sequestration
  5. ‘ADNOC Gas Signs $450-550 Million LNG Supply Agreement with PetroChina International Co., Ltd’, ADNOC Gas, (7 September 2023), https://adnocgas.ae/en/investor-relations/Announcements
  6. ‘COP28 President-Designate Calls for robust response to the Global Stocktake to get ‘back on track’ to Paris’, COP28 UAE, (27 September 2023), www.cop28.com/en/news/2023/09/china-September-visit-wrap

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