Page 9 - AsianOil Week 14 2022

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Six companies partner on Singapore

green e-methanol project

ENERGY SIX companies have formed a partnership that [GHG] emissions”. The companies are consider-
TRANSITION will aim to establish the first green e-methanol ing green e-methanol as a potential alternative
plant in Asia. The companies – Thailand’s PTT fuel that could help meet 2030 and 2050 goals
Exploration and Production (PTTEP), Air Liq- set by the International Maritime Organization
uide, YTL PowerSeraya, Oiltanking Asia Pacific, (IMO).
Kenoil Marine Services and AP Moller-Maersk PTTEP noted that Singapore is a major mar-
– have signed a memorandum of understand- itime bunkering hub, and the companies believe
ing (MoU) on green methanol value chain it thus represents an ideal location for projects
collaboration. focused on alternative shipping fuels.
Under the MoU, the partners will explore the Some of the companies involved are already
Singapore is a major feasibility of establishing a green e-methanol working on green e-methanol initiatives. For
maritime bunkering pilot plant with a minimum capacity of 50,000 example, Maersk said in August 2021 that it had
hub, and the tonnes per year (tpy). The plant would be located secured partners for the production of green
companies believe it in Singapore, and feasibility studies are due to be e-methanol in Denmark for its first vessel due to
thus represents an ideal completed by the end of 2022. If the plant is built, run on the fuel. Fuel production from that pro-
location for projects it would be the first of its kind in Southeast Asia. ject is due to start in 2023.
focused on alternative The proposed plant would convert captured Meanwhile, PTTEP had set itself a long-term
shipping fuels. biogenic carbon dioxide (CO2) and green goal of net zero emissions by 2050 around a week
hydrogen produced from renewable electricity before it announced its participation in the green
into green e-methanol. PTTEP described green e-methanol partnership. The company will likely
e-methanol as a “low-carbon fuel that could be keen to demonstrate that it is taking the net-
enable a significant reduction in greenhouse gas zero commitment seriously.™

EAST ASIA

NextDecade lines up another Chinese

offtaker for Rio Grande LNG

PROJECTS & US-BASED NextDecade appears to be mov- is well placed to benefit from the strengthening
COMPANIES ing more rapidly than ever before on securing LNG market,” stated NextDecade’s chairman
offtakers for its proposed Rio Grande LNG facil- and CEO, Matt Schatzman.
ity in Texas. Indeed, prior to the past two weeks, NextDec-
The company announced on April 6 that it ade only had one other offtaker – Shell – lined
had entered into a sales and purchase agreement up for Rio Grande LNG, so recent developments
(SPA) with a subsidiary of China’s ENN Natural represent significant momentum for the com-
Gas for the supply of 1.5mn tonnes per year (tpy) pany. It is aiming to take a final investment deci-
from Rio Grande over a 20-year period. sion (FID) on at least two trains at Rio Grande in
Notably, this is the second deal in two weeks the second half of 2022, sanctioning its remain-
for both companies. On March 24, NextDec- ing three trains at some point thereafter, and first
ade entered into a binding heads of agreement production is targeted from 2026.
(HoA) with China’s Guangdong Energy Group The company has been touting Rio Grande’s
Natural Gas, also for the supply of up to 1.5mn environmental credentials, saying it would seek
tpy from Rio Grande over a 20-year period. to reduce emissions from the project by at least
And on March 29, Energy Transfer said it had 90% – and likely more – via carbon capture and
entered into two SPAs with affiliates of ENN for storage (CCS) among other methods.
1.8mn tpy and 900,000 tpy of LNG over 20 years The offtake deals involving Chinese compa-
from its proposed Lake Charles LNG export nies illustrate that Europe is not alone in seeking
terminal. more US LNG, and that buyers elsewhere in the
“The commercial momentum at [Rio Grande world will be all too aware of competition for
LNG] is accelerating and we believe the company supplies intensifying.™

Week 14 08•April•2022 www. NEWSBASE .com P9