Page 5 - GLNG Week 48 2021

GLNG COMMENTARY GLNG

The Höegh Galleon will
serve the Port Kembla
terminal.

generation is yet to be confirmed, the vessels The scale of new basin development will be
are expected to have the capability to receive informed by gas prices, as well as the outlook
both natural gas and green hydrogen, or its for future demand, particularly for LNG beyond
derivatives. 2035, the Australian government said.
Green hydrogen is made through electrolysis, The government also touted future opportu-
using renewable energy. It is the cleanest form of nities for the country’s nascent clean hydrogen
hydrogen, but also the costliest. Indeed, green industry, suggesting that there could be export
hydrogen is not yet commercially viable, though opportunities for liquefied hydrogen or clean
a growing number of companies are unveiling ammonia.
proposals for green hydrogen projects. This now The NGIP anticipates that Australia will
includes AIE, in partnership with Hoegh. remain a “dominant force” in the global LNG
Indeed, AIE is part of the Tattarang group of market, especially in the Asia-Pacific region.
companies, owned by billionaire Andrew For- The report noted that the interim NGIP had
rest. He is also chairman of Fortescue Future already highlighted the importance of LNG
Industries, which is aiming to begin commer- imports as a “flexible source of supply that assists Hoegh and AIE are
cial-scale green hydrogen production in 2023. with seasonal demand variations”. It pointed in
particular to winter demand peaks in southern also now trying
What next? demand centres and said the Port Kembla pro- to bolster their
AIE’s announcement came within days of ject was the most advanced of the LNG import
the Australian government unveiling its first proposals, with all necessary approvals in place environmental
full National Gas Infrastructure Plan (NGIP) to be built.
and the Future Gas Infrastructure Investment “International gas prices can be highly vola- credentials.
Framework. The plans are aimed at helping the tile,” the NGIP stated. “Imported gas is likely to
country secure its gas supplies over the next 20 be delivered at a higher cost than domestic sup-
years. ply alternatives depending on the time of import
The full NGIP builds on an interim NGIP that or if high international prices continue. If prices
was published earlier in the year and focused on trend lower, imports will become more compet-
alleviating short-term supply shortfall risks up itive, potentially leading to higher import termi-
to 2027. The full NGIP takes a longer-term view, nal utilisation especially during winter months.”
looking at Australia’s gas infrastructure needs The report said that LNG import capacity
up to 2041. should act as a “complementary supply source
The full NGIP envisions at least one new alongside sufficient domestic production”
basin being developed before 2030 in order to to meet winter peak demand and to alleviate
meet projected demand on the East Coast. The southern supply shortfalls. Port Kembla is
plan also calls for pipeline capacity expansions hoping to rise to the challenge in the not-too-
– involving both existing and new pipelines. distant future.™

Week 48 03•December•2021 www. NEWSBASE .com P5