Page 4 - GLNG Week 15 2021
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GLNG                                          COMMENTARY                                               GLNG




       Push to clean up LNG continues







       More developments related to the decarbonisation of LNG have been reported in

       recent days



        ENERGY           EFFORTS to decarbonise LNG, while still in
        TRANSITION       their early days, are picking up pace. Several
                         separate developments related to cleaning up
       WHAT:             the super-chilled fuel have been reported over
       A handful of      the past few days.
       developments related to   Two Europe-based giants, Total and Siemens
       the push to decarbonise   Energy, signed a technical collaboration agree-
       LNG have been reported   ment to study sustainable solutions for reducing
       in recent days.   carbon dioxide (CO2) emissions. According to
                         an April 13 statement from Total, the collabora-
       WHY:              tion will focus on natural gas liquefaction facili-
       Various companies   ties and associated power generation.
       are stepping up efforts   In Japan, meanwhile, carbon-neutral LNG
       to produce and trade   trading was reported to be picking up pace.
       carbon-neutral cargoes   Toho Gas received its first carbon-neutral cargo
       of the fuel.      on April 8, and pledged to buy more LNG that
                         has had its emissions offset. Separately, Tokyo
       WHAT NEXT:        Gas said it had secured 70mn cubic metres
       Such decarbonisation   worth of carbon-neutral city gas supply cus-
       efforts are set to continue   tomers, and that it saw considerable potential               Pavilion’s first carbon-
       and gain momentum.  for growing carbon-neutral LNG demand.  technologies and know-how to deliver “indus-  neutral LNG cargo used
                           And in Singapore, Pavilion Energy  trial-stage solutions”. Examples of such solutions   carbon offsets from
                         announced on April 15 that it had imported its  provided by the companies include the combus-  projects designed for
                         first carbon-neutral LNG cargo – also the first  tion of clean hydrogen in gas turbines, competi-  forest protection and
                         such cargo for the city-state.       tive all-electrical liquefaction, optimised power   restoration.
                           The various developments come as no great  generation, the integration of renewable energy
                         surprise, given that the companies and coun-  into liquefaction plants’ power systems and their
                         tries involved have already been working on  efficiency enhancement.
                         incorporating carbon-neutral LNG into their   “Reducing its carbon footprint is essential for
                         plans. Instead, the latest news demonstrates that  LNG to play its role fully in the energy transi-
                         progress is being made.              tion,” commented Total’s president of explora-
                                                              tion and production, Arnaud Breuillac.
                         Collaboration                         Siemens’ executive vice-president of indus-
                         Total delivered its first cargo of carbon-neutral  trial applications, Thorbjörn Fors, said the part-
                         LNG in October 2020, shipping the fuel from  ners would look at how they can competitively
                         Australia’s Ichthys liquefaction plant to China’s  reduce the carbon footprint of brownfield and
                         Dapeng terminal. Total said at the time that the  greenfield LNG projects alike.
                         delivery represented a new step as it seeks to sup-  Total notes that it is the world’s second-largest
                         port its customers towards carbon neutrality.  privately owned LNG player, with a global port-
                           “The development of LNG is essential to meet  folio anticipated to reach nearly 50mn tonnes
                         the growth in global demand for energy while  per year (tpy) by 2025 and a global market share
                         reducing the carbon intensity of the energy  of around 10%. Its push to decarbonise LNG
                         products consumed,” Total’s president for gas,  therefore has the potential to have a significant
                         Laurent Vivier, stated in October.   and far-reaching impact.
                           Now, the new collaboration with Siemens
                         appears to represent the latest step in Total’s  Japanese push
                         efforts to decarbonise its own operations and  For Japan, one of the leading importers of LNG,
                         those of its customers. It builds on a previous  decarbonising the fuel is one of numerous steps
                         agreement between the two, struck in June 2020,  being explored as the country targets net-zero
                         aimed at advancing new concepts for green  greenhouse gas (GHG) emissions by 2050. The
                         LNG.                                 latest moves being reported this week come after
                           According to the French company’s latest  the Carbon Neutral LNG Buyers Alliance was
                         statement, the partners will now combine   formed in March. The alliance includes Tokyo



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