Page 12 - AsianOil Week 50 2022

AsianOil NEWS IN BRIEF AsianOil

Petronas, JX Nippon strike identification of incipient problems that, import capacity is being proposed, while
In Bangladesh, 15.1mtpa of new LNG
without appropriate intervention, could
deal for BIGST offshore fields in halt production via equipment damage or 26.3mtpa were cancelled and 9.3mtpa of
failure..
LNG projects are in operation.
Malaysia plan of Asian countries could lock Asian
However, this $119 billion investment
Malaysia's state energy firm Petronas said Wah Seong wins $127mn FPSO economies into reliance on a volatile,
on Monday it would work with JX Nippon expensive energy source and challenge
Oil & Gas Exploration Corp. on a joint topside module order global efforts to address the climate crisis.
proposal to monetize gas potential in the The report mentioned that new Asian
Bujang, Inas, Guling, Sepat, and Tujoh Wah Seong Corporation's Singapore-based LNG projects face a difficult market. In
(BIGST) fields located off the shores of subsidiary, WS Engineering & Fabrication the wake of Russia's invasion of Ukraine,
peninsular Malaysia. Pte. has won a contract to build FPSO European countries have rushed to secure
The BIGST fields are located off Kerteh, topside modules from Malaysian FPSO new gas supplies, elevating the cost of LNG
Terengganu in eastern Malaysia, Petronas supplier Yinson. worldwide.
said. The contract is worth around $127 High LNG prices have already had a
Carbon capture and storage (CCS) million. significant impact across Asia, reads the
technology will be key to monetizing the According to Wah Seong, the scope of press release.
fields as they contain high carbon dioxide, work of the contract involves engineering, According to the International Energy
Petronas said, adding that it will be the first procurement, and construction of "certain" Agency (IEA), LNG imports were down 7%
CCS project in Peninsular Malaysia. FPSO topside modules. year-on-year between January and August,
"The BIGST cluster will also be the The work and services under the contract with spot cargoes down 28% over the same
catalyst that is expected to spur the are expected to be completed within 24 period.
development of other high contaminant months. Wah Seong did not say for which Price-sensitive South Asian LNG buyers,
fields in Peninsular Malaysia, which was FPSO project exactly the modules would be particularly Pakistan and Bangladesh, are
not possible prior to this, due to the lack of built. finding it difficult to pay high spot prices as
complete CO2 handling infrastructure," the The contract was awarded by Yinson's the region moves into the winter.
company said in a statement. subsidiary, Yinson Azalea, the same IEA and Rystad Energy also forecasted
company that earlier this week entered into Asia's future gas demand; and reports that
an agreement for preliminary activities with in countries like Bangladesh, new LNG
Proserv secures SMS as Eni Angola for the provision of a floating, projects are being dropped or delayed due
production, storage, and offloading vessel in
to poor economics.
sampling rep in Malaysia Angola. Bangladesh and Pakistan have been priced
Moreover, developing economies, like
Subject to the firm contract award, the
Controls technology company Proserv said FPSO would be deployed for the Agogo out, failing to secure LNG shipments
it has signed an agreement with Aberdeen- Integrated West Hub Development Project, and resulting in rolling blackouts. These
based sand and erosion monitoring, located in the West Hub part of Block 15/06 conditions could depress future gas demand
analytics and management experts SMS. in Angola. in emerging Asian economies.
The deal sees SMS become the exclusive Yinson said on December 5 that the According to the Institute for Energy
agent and representative for Proserv’s agreement for preliminary activities would Economics and Financial Analysis (IEEFA),
sampling activities across Malaysia. last for 60 days and be worth about $218 the unaffordability of LNG and fuel supply
According to Proserv, its combined million all together. insecurity may cause new import terminals
offering with SMS will give clients a step to go unused, potentially costing billions of
change in the visibility of the condition dollars in stranded assets.
and integrity of flowlines and, through the Bangladesh plans $2.6bn LNG As long as unaffordable LNG prices
live measurement of sand quantities, will and procurement challenges continue,
allow operators to make informed early import build-out $96.7 billion dollars of proposed
strategy decisions around production rates, LNG-related infrastructure projects in
maintenance planning and ultimately the Even as the global gas crisis upends the Pakistan, Bangladesh, Vietnam, and the
life of critical infrastructure. liquefied natural gas (LNG) trade, Asia Philippines will face a heightened risk of
As part of the tie-up, Proserv will also is still positioned to build the majority of underutilization or cancellation.
establish a service center in Malaysia new terminals to import LNG, according Moreover, Asia's LNG plans form part of
located at SMS’s local facility in Labuan. to a recent Global Energy Monitor (GEM) an estimated $797 billion global build-out
This will be based upon the model in survey. of LNG terminals, which is occurring even
operation at Proserv’s main Sampling Bangladesh stands among the top ten as the international community recently
Center of Excellence in Aberdeen and at Asian countries, proposing USD 2.6 billion reaffirmed its commitment to limiting
its sites in the US, Norway, the UAE, Saudi cost estimation for LNG import capacity, global warming to 1.5°C at the 2022 United
Arabia and Qatar. The center will supply said a press release issued on Thursday. Nations Climate Change Conference (COP
both servicing and sampling equipment According to GEM, LNG projects 27).
rental. totaling 442 million tonnes per annum
SMS engages non-intrusive corrosion (mtpa) of new import capacity are at
and erosion sensors to supply real- various stages of development in Asia, 65%
time monitoring and data acquisition of new developments globally, and enough
which when analysed and interpreted by to theoretically absorb the entire global
subject matter experts can enable swift LNG trade of 2021, said the press release.

P12 www. NEWSBASE .com Week 50 16•December•2022