Page 10 - AsianOil Week 39 2022

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Hess launches Malaysian gas project

POLICY US oil firm Hess kicked off production last management in Malaysia, Mohamed Firouz
week at the North Malay Basin (NMB) Phase Asnan, said in a statement. “Together, we
Hess took an FID on 3 gas project at Block PM302 some 290 km have continued to develop the NMB project
the project in 2019. off the coast of Peninsular Malaysia. to unlock the full potential of the block.”
The launch was reported by its partners The outlook for upstream development
in the project, Malaysia’s state-owned Petro- in Malaysia is relatively strong, with several
nas, in a statement. Block PM302 is operated new projects due on stream in the next five
by Hess with a 50% interest, while Petronas years that will provide extra gas supply to the
owns the other 50%. Bintulu and Malaysia LNG projects.
The pair took a final investment decision Petronas recently suffered a setback at the
(FID) on NMB Phase 3 in 2019, with the pro- Pegaga offshore gas field, which had been
ject involving the construction of the Berga- due online last year. Its launch was pushed
ding-B wellhead platform. It will expand gas back to March this year after mercury had
supply from Block PM302 by 100mn cubic been found in its gas flow. This forced Petro-
feet per day, bringing the total to 400 mmcf nas to defer LNG cargoes.
per day (4.1bn cubic metres per year). Under Petronas’ Upstream Ambition
“We are pleased that Hess has taken a 2030 strategy, the company is targeting a
long-term view of the business in Malaysia growth in Malaysian hydrocarbon output to
across industry cycles, demonstrating confi- 2mn barrels of oil equivalent per day by the
dence in Malaysia’s upstream industry,” Pet- end of the decade, up from 1.8mn boepd at
ronas’ senior vice president for petroleum present. ™

OCEANIA

Chevron sells first carbon-neutral LNG

POLICY CHEVRON announced on September 30 it had it is expected to see a significant expansion as
delivered its first cargo of carbon-neutral LNG to increasingly climate-conscious buyers seek to
Chevron is joining the CPC Taiwan’s terminal in Kaohsiung, in Taiwan, reduce the climate impact of the gas they import.
increasing number of from the Gorgo liquefaction terminal in north- To date, most carbon-neutral LNG has been
LNG players trading west Australia. traded in Asia.
carbon-neutral cargoes. Greenhouse gas (GHG) emissions associ- Regarding the cargo in question, Chevron
ated with the cargo will be fully offset by retiring calculated its Scope 1 and 2 emissions from
high-quality nature-based and energy efficiency upstream production, transportation, liquefac-
offsets in Cambodia, Indonesia and Nepal, tion and shipping using methodology jointly
Chevron said. developed with Pavilion Energy and QatarEn-
“Chevron’s first full lifecycle emissions offset ergy. Scope 3 emissions were calculated based on
cargo advances our net-zero ambitions and rep- the PACE Global report1 for regasification and
resents a significant milestone in Chevron’s rela- distribution and IPCC 2006 emissions factor2
tionship with CPC Corp, Taiwan,” the president for combustion.
of Chevron Supply and Trading, John Kuehn, Emissions will be fully offset by retiring
said in a statement. “We share the view that the Verra3 certified offsets, namely from the Katin-
future of energy is lower carbon and expect this gan Peatland Restoration and Conservation
offset-paired cargo to be the first of many as we Project in Indonesia, the Southern Cardamom
leverage our capabilities, assets and customer REDD+ Project in Cambodia and the Energy
relations to deliver energy solutions to a grow- Efficient Cooking Solution in Nepal.
ing world.” Among the leading suppliers of carbon-neu-
Carbon-neutral LNG remains something tral LNG so far have been Shell, TotalEnergies,
of a niche, commanding only a miniscule Japan’s Inpex and Tokyo Gas and Malaysia’s Pet-
share of overall LNG trading today. However, ronas. ™

P10 www. NEWSBASE .com Week 39 05•October•2022