Page 18 - GLNG Week 03 2021

GLNG MIDDLE EAST GLNG

QP raises climate

ambitions

ENERGY QATAR Petroleum (QP) launched a new sus-
TRANSITION tainability strategy last week, targeting a 25%
reduction in the emissions intensity of its LNG
facilities by 2030.
The national gas company is among a number
of LNG exporters across the world taking steps
to address their environmental impact as inves-
tors and buyers grow increasingly climate-con-
scious. The world’s biggest LNG producer is also
looking to cut its upstream emissions by at least
15% and reduce flaring intensity by over 75%
within ten years. It has set its emissions in 2013
as a baseline for the cuts.
Furthermore, QP wants to end routine flaring
by 2030 and limit fugitive methane emissions
across the gas value chain by setting a methane
intensity target of 0.2% across all facilities by
2025. It already spent some $900mn on reduc-
ing flaring between 2012 and 2018, and has
pledged a further $170mn for the cause between
2018 and 2021.
QP estimated its equity upstream emissions at
28.1mn tonnes of CO2 equivalent in 2019, while
total emissions were 39.1mn tonnes. Like some
of its rivals, it too is looking to sequester CO2
at some of its export facilities. The Qatari gov-
ernment revealed in October 2019 that it had a LNG market to date, but will likely grow, though
plant in operation capable of capturing and stor- the industry will need to take care to balance
ing some 2.1mn tpy of CO2 from LNG facilities. decarbonisation with cost-competitiveness.
It aims to ramp the plant’s capacity to 5mn tpy Here is where QP has a clear advantage. The
by 2024 and 7mn tpy by 2027, hailing the project company boasts that it has the lowest produc-
as the largest CCS investment in the Middle East tion costs, which explains why it has embarked
and North Africa. on a massive expansion of its liquefaction capac-
QP also wants to establish 4 GW of renewable ity at a time when many suppliers are postpon-
energy capacity in Qatar, which should curtail ing projects.
The strategy emissions by a further 5mn tpy, it said. The North Field East (NFE) project will raise
Qatari Energy Minister and QP CEO Saad QP’s production from 77mn tpy at present to
has three Sherida Al-Kaabi said the strategy was a “bold 110mn tpy, with first gas scheduled for 2025.
main pillars: commitment with clear goals and milestones The North Field South (NFO) will ramp up
that ensure we embed sustainability consid-
capacity further, to 126mn tpy, by the late 2020s.
But as the company’s output increases so too
climate change erations into the way we plan and manage our will its CO2 sequestering needs. To meet its cli-
entire business and operations.”
The plan will “shape our actions and the way mate goals, then, QP will need to ensure that
mitigation, we operate over the next decade,” he said. It will CO2 capturing and storing plans progress at the
operational “play a decisive role in helping reduce the impact same pace as its expansion drive.
responsibility of climate change by implementing measures to QP is using other methods to scale back its
curb emissions, produce LNG using the latest CO2 footprint. In November last year it signed
and social proven carbon reduction technologies and com- a 10-year contract to supply 1.8mn tpy of LNG
to Singapore’s Pavilion Energy. The company
pensate for residual emissions where necessary.”
The strategy has three main pillars: climate hailed the deal as the first “with specific envi-
and economic change mitigation, operational responsibility ronmental criteria and requirements designed
development. and social and economic development. It is in to ultimately reduce the carbon footprint of the
line with Paris Agreement goals, QP said. LNG supplies.”
Each cargo shipped to Pavilion will detail
QP’s clear advantage how much CO2 was emitted in its production.
The concept of carbon-neutral LNG is being Although there is no obligation for carbon
talked about with increasing frequency. It offsets, the intent is there to reduce emissions,
accounts for only a miniscule fraction of the Pavilion said at the time.™

P18 www. NEWSBASE .com Week 03 22•January•2021