Page 6 - DMEA Week 03 2021

DMEA COMMENTARY DMEA

QP raises climate ambitions

QP is raising its climate ambitions while preparing for a huge expansion in its LNG capacity

QATAR QATAR Petroleum (QP) launched a new sus-
tainability strategy last week, targeting a 25%
WHAT: reduction in the emissions intensity of its LNG
Qatar aims to reduce its facilities by 2030.
emissions intensity by The national gas company is among a number
25% by 2030. of LNG exporters across the world taking steps
to address their environmental impact as inves-
WHY: tors and buyers grow increasingly climate-con-
LNG exporters across the scious. The world’s biggest LNG producer is also
world are doing more looking to cut its upstream emissions by at least
to address emissions 15% and reduce flaring intensity by over 75%
as investors and buyers within ten years. It has set its emissions in 2013
have grown increasingly as a baseline for the cuts.
climate-conscious. Furthermore, QP wants to end routine flar-
ing by 2030 and limit fugitive methane emissions
WHAT NEXT: across the gas value chain by setting a methane
QP can take advantage intensity target of 0.2% across all facilities by
of its low costs, but its 2025. It already spent some $900mn on reducing
CCS plans will need to flaring between 2012 and 2018, and has pledged
progress at the same a further $170mn for the cause between 2018
pace as its LNG expansion and 2021.
work. QP estimated its equity upstream emissions
at 28.1mn tonnes of CO2 equivalent in 2019,
while total emissions were 39.1mn tonnes. Like
some of its rivals, it too is looking to sequester accounts for only a miniscule fraction of the
CO2 at some of its export facilities. The Qatari LNG market to date, but will likely grow, though
government revealed in October 2019 that it the industry will need to take care to balance
had a plant in operation capable of capturing decarbonisation with cost-competitiveness.
and storing some 2.1mn tpy of CO2 from LNG Here is where QP has a clear advantage. The
facilities. It aims to ramp the plant’s capacity to company boasts that it has the lowest production
5mn tpy by 2024 and 7mn tpy by 2027, hailing costs, which explains why it has embarked on a
the project as the largest CCS investment in the massive expansion of its liquefaction capacity
Middle East and North Africa. at a time when many suppliers are postponing
QP also wants to establish 4 GW of renewable projects.
energy capacity in Qatar, which should curtail The North Field East (NFE) project will raise
emissions by a further 5mn tpy, it said. QP’s production from 77mn tpy at present to
Qatari Energy Minister and QP CEO Saad 110mn tpy, with first gas scheduled for 2025. The
Sherida Al-Kaabi said the strategy was a “bold North Field South (NFO) will ramp up capacity
commitment with clear goals and milestones further, to 126mn tpy, by the late 2020s.
that ensure we embed sustainability considera- But as the company’s output increases so
tions into the way we plan and manage our entire too will its CO2 sequestering needs. To meet its
business and operations.” climate goals, then, QP will need to ensure that
The plan will “shape our actions and the way CO2 capturing and storing plans progress at the
we operate over the next decade,” he said. It will same pace as its expansion drive.
“play a decisive role in helping reduce the impact QP is using other methods to scale back its
of climate change by implementing measures to CO2 footprint. In November last year it signed
curb emissions, produce LNG using the latest a 10-year contract to supply 1.8mn tpy of LNG
proven carbon reduction technologies and com- to Singapore’s Pavilion Energy. The company
pensate for residual emissions where necessary.” hailed the deal as the first “with specific envi-
The strategy has three main pillars: climate ronmental criteria and requirements designed
change mitigation, operational responsibility to ultimately reduce the carbon footprint of the
and social and economic development. It is in LNG supplies.”
line with Paris Agreement goals, QP said. Each cargo shipped to Pavilion will detail
how much CO2 was emitted in its production.
QP’s clear advantage Although there is no obligation for carbon
The concept of carbon-neutral LNG is being offsets, the intent is there to reduce emissions,
talked about with increasing frequency. It Pavilion said at the time. ™

P6 www. NEWSBASE .com Week 03 21•January•2021