Page 12 - FSUOGM Week 39 2021

FSUOGM COMMENTARY FSUOGM

Too policymakers regarding minimising methane emissions from
The study concluded that policymakers should the entire natural gas sector must be ensured.”
consider life-cycle emissions to judge how clean The study continued by saying that blue
hydrogen is, whether that is the life-cycle emis- hydrogen had a role to play in decarbonising
sions from the electricity used to power electrol- energy systems in the nearer term, given the
ysis, or the natural gas supply chain. current scarcity and comparatively high cost of
“Only in this way can the whole system impli- green hydrogen.
cations of such measures be fully understood,” it “Blue hydrogen can play a role as a bridg-
stated. “This means emission monitoring, veri- ing technology supporting the uptake of
fication and reporting is required for emissions hydrogen infrastructure and end-use trans-
across the life cycle.” formation,” the study explained. “Blue hydro-
The study called for improved public disclo- gen projects can be developed under the
sure of these emissions, as well as emissions pric- recommendations presented here without
ing, public funding for GHG performance, and crowding out the global ramp-up of green
regulation to incentivise the industry to produce hydrogen supply.”
as clean hydrogen as possible. “As both blue and green hydrogen have
“As European gas extraction has strongly innovation potential,” it continued, “policies
declined over the last decades, with no trend and regulations should support both options
reversal in sight, importing gas from countries independently until they are fairly mature and
with good monitoring practices and low meth- can compete (e.g. based on carbon pricing
ane emission rates should be prioritised from accounting for full life cycle GHG) – provided
a European perspective,” the study said. “From the above conditions for blue hydrogen are met
a US perspective, and for other countries with and the necessary prioritisation of demand areas
primarily domestic supplies, best practices is reflected.” ™

PIPELINES & TRANSPORT

Fluxys, Novatek axe Rostock LNG plans

GERMANY RUSSIA’S Novatek and Belgium’s Fluxys have in early June they were “extremely confident”
dropped plans to build a mid-sized LNG ter- that they would “soon” finalise deals with cus-
The project's minal in Rostock, north Germany, the Interfax tomers and contractors ahead of taking a final
cancellation comes as news agency reported on September 27 citing investment decision (FID). German LNG Ter-
other LNG schemes sources. minal (GLT), a joint venture between Dutch
in Germany make Novatek and Fluxys formed a 49:51 joint ven- gas transmission system operator (TSO) Gasu-
progress. ture in October 2018 to develop the project, and nie, Dutch chemical storage firm Vopak and
they leased some land at Rostock for the facility. German logistics company Oiltanking, plan
The terminal, with a planned capacity of 300,000 to build a terminal in Brunsbuettel capable of
tonnes per year (tpy), was expected up and run- bringing ashore 8bn cubic metres per year of
ning by 2022. gas. In a statement on June 4, GLT said the pro-
Confirming the project’s cancellation, a ject had obtained an exemption on tariff and
spokesperson for Fluxys said there were already network access regulations from the European
terminals offering small-scale LNG services in Commission.
the area, including at Zeebrugge in Belgium and Meanwhile Fluxys signed up in March to be
Dunkirk in France. an “industrial partner” at another LNG import
“Despite the constructive support of all stake- project in Stade in Germany.
holders in the project, the current market condi- Stade LNG is the biggest of several LNG
tions have proven too difficult to implement the import schemes in Germany, which already has
project,” Fluxys told the Russian news agency. access to a diversified mix of gas supplies but is
The Rostok terminal was due to receive car- looking to strengthen its position as a hub for
goes from the mid-scale Cryogas-Vysotsk plant central Europe. The terminal is anticipated to
in north-west Russia, which is majority-owned receive up to 12 bcm per year of gas beginning
by Novatek. The decision to axe the project casts in 2026.
into doubt plans to expand the Cryogas-Vysotsk While project developer Hanseatic Energy is
facility’s capacity, from 600,000 tpy to 800,000 yet to take an FID on the scheme, the non-bind-
tpy. ing phase of an open season for the terminal’s
The project’s cancellation also comes as other capacity that was finished in mid-February con-
proposed LNG projects in Germany are making firmed sufficient market interest, Hanseatic has
progress. said. The binding phase was due to take place
The developers behind what could be Ger- during the summer but was delayed until late
many’s first LNG regasification terminal said September. ™

P12 www. NEWSBASE .com Week 39 29•September•2021