Page 11 - AsianOil Week 42 2021

AsianOil EAST ASIA AsianOil

Sakhalin Energy delivers

carbon-neutral LNG to Japan

PIPELINES & THE Gazprom-led Sakhalin Energy consortium Sakhalin Energy CEO Roman Dashkov said in
TRANSPORT has delivered its first carbon-neutral/offset LNG a statement.
from its terminal on Sakhalin Island to Japan, the Sakhalin Energy previously entered into a
group announced on October 13. decarbonisation pact with Toho Gas. Besides
The cargo was put on board Russia’s Grand Gazprom, the consortium’s members are Royal
Aniva LNG carrier and transported to Japan’s Dutch Shell, and Japanese companies Mitsui and
Toho Gas` Chita terminal in Japan’s Aichi pre- Mitsubishi.
fecture. Its emissions were offset using carbon Russian President Vladimir Putin has
credits obtained by Gazprom. ordered Gazprom to look into producing fuel
Moving forward, Sakhalin Energy wants to from gas condensate on Sakhalin Island, the
buy carbon credits from a pilot carbon trading Kremlin said on October 18.
system that is due to start up on Sakhalin next Gazprom will work with regional and federal
year to cover its future LNG supplies. The Far authorities to study the feasibility of producing
Eastern island is striving to become the first Rus- jet fuel, gasoline and diesel in the Far Eastern
sian region to reach carbon neutrality, as soon region, using condensate from its local gas fields
as 2025. as feedstock. Putin also ordered the government
Carbon neutral/offset LNG will be “a com- to submit proposals by December 1 on address-
petitive standard offer for many years ahead,” ing emissions on Sakhalin.™

OCEANIA

NSW court rejects Narrabri CBM challenge

POLICY A New South Wales court has rejected a group of Scope 3 emissions, noting that not only had the
farmers’ legal challenge to the state government’s commission considered placing restrictions on
decision to approve the Narrabri coal-bed meth- downstream emissions but was within its rights
ane (CBM) project. not to do so. He said: “Santos was not shown to
The NSW Independent Planning Commis- have any particular relationship with or control
sion (IPC) signed off on Santos’ AUD3.6bn over any end-user.”
($2.7bn) development in September 2020, while The developer welcomed the court’s ruling,
imposing 134 conditions. The IPC’s decision noting that it was ready to start working on the
led Australia Environment Minister Sussan Ley project following the 12-month delay.
to give her approval in November 2020. Santos Referring to the ongoing international energy
intends to drill up to 850 wells, with eventual crisis, Santos managing director and CEO Kevin
output ring-fenced for the local market. Gallagher said: “We are seeing play out in real
However, the farmers – collectively known as time around the world what happens if you do
the Mullaley Gas and Pipeline Accord (MGPA) not have domestic energy security.”
– launched a legal challenge in December 2020 He added: “On the East Coast of Australia,
arguing that the IPC had failed to consider the regulators continue to warn about an increas-
project’s full environmental impact. ingly tight market in the future. A shortage of
The MGPA argued that the IPC was incor- supply means only one thing and that is higher
rect to compare the emissions from the CBM prices for NSW households and businesses. If gas
development to a coal project and should have was currently being imported into NSW from
instead evaluated the project’s emissions in iso- the international spot market via an import ter-
lation. However, the Chief Justice of the NSW minal it would cost NSW customers more than
Land and Environment Court, Brian Preston, five times the cost of gas from Narrabri.”
ruled against the farmers on October 18. The head of the Australian Petroleum Produc-
Preston said the coal project comparison was tion and Exploration Association (APPEA), Andrew
relevant to “assessing the potential benefits of McConville, described the court’s decision as a step
carrying out the project”, while adding: “MGPA towards delivering reliable energy for the state.
has not established that the IPC asked itself the He said: “The Narrabri project is forecast to
wrong question.” deliver 70 PJ [1.82bn cubic metres] of supply to
Preston also rejected the MGPA’s claim that the NSW domestic market, meeting the half of
the IPC had failed to consider the project’s the state’s forecast gas needs.™

Week 42 21•October•2021 www. NEWSBASE .com P11