Page 7 - AsianOil Week 26 2022

AsianOil SOUTHEAST ASIA AsianOil

Offloading begins at Nong Fab LNG import plant

PROJECTS & CONTRACTOR Saipem said last week that off- Saipem expects this to provide a timely boost
COMPANIES loading of the first LNG cargo had begun earlier as Thailand faces rising power demand, helping
in June at PTT LNG’s Nong Fab import terminal to provide the country with “stable and reliable”
in Thailand’s Rayong Province. energy supply. However, days before Saipem’s
Saipem and CTCI had jointly taken on the announcement, it was reported that Thailand’s
$925mn engineering, procurement and con- state-owned gas importers had been curbing
struction (EPC) contract for the terminal, imports of LNG from the spot market because
starting work in mid-2018. The plant includes prices were too high and availability was limited.
Nong Fab is Thailand’s two LNG storage tanks, each with a capacity of This could backfire, though, with traders
second LNG import 250,000 cubic metres, and a regasification facil- warning Bloomberg that if LNG imports are cut,
terminal after Map Ta ity that can process 7.5mn tonnes per year (tpy) Thailand could struggle to meet the deficit using
Phut. of LNG. Saipem noted in its statement that the other sources. And LNG volumes shipped under
project was the largest ever executed in Thailand long-term contracts would still be shielded from
in terms of tank capacity and also included the recent volatility on the spot market.
largest trestle in the LNG industry globally. Nong Fab will be Thailand’s second LNG
Vessel-tracking data show that the commis- import terminal after state-owned PTT’s Map
sioning cargo for the Nong Fab facility had come Ta Phut facility, also in Rayong. Indeed, the
from Qatar. Full commissioning and start-up of two facilities will be adjacent to each other.
the Nong Fab terminal are due to take place later Map Ta Phut has a regasification capacity of
this year. 11.5mn tpy.™

EAST ASIA

CNOOC partners with ExxonMobil,

Shell to explore CCS opportunities

ENERGY CHINA National Offshore Oil Corp. (CNOOC) carbon policy systems in China and propose
TRANSITION has signed a memorandum of understanding how a CCS system could be deployed at the Day-
(MoU) with ExxonMobil, Shell and the Guang- awan Petrochemical Industrial Park. This could
dong Provincial Development & Reform Com- be the first petrochemical facility in the country
mission that will have the four partners evaluate to install CCS equipment.
the potential to establish a carbon capture and “China has an ambitious decarbonisation
storage (CCS) hub in Guangdong Province, path – from about 10bn tonnes of CO2 emis-
China. sions a year to net-zero within 30 years,” Jason
The MoU stipulates that the partners con- Wong, executive chairman of Shell Companies
duct a joint study to assess a technical solution, in China, said in a statement announcing the
develop a commercial model and work with gov- MoU. “A shift to cleaner energy sources and
ernment to develop enabling policies. energy efficiency will not be enough. China will
The hub would be located in the Daya Bay also need to actively remove emissions. This
National Economic and Technological Devel- makes CCS an essential part of the solution for
opment Zone in Huizhou and be designed to China to achieve carbon peak by 2030 and car-
capture up to 10mn tonnes per year (tpy) of bon neutrality by 2060.”
carbon dioxide (CO2). The proposed facility Anna Mascolo, executive vice president of
would be China’s first large-scale offshore CCS Shell Emerging Energy Solutions, added that the
hub. surge in demand for CCS in China gives Shell
CNOOC has set a target for itself to reduce a substantial opportunity to grow its sectoral
its fossil fuel output by more than half by 2050. decarbonisation business.
It plans for its non-fossil fuel domestic output to “To that end, Shell has been proactively work-
be more than 50% of produced fuels by mid-cen- ing with CNOOC and other partners to evaluate
tury as part of China’s overall energy transition the Daya Bay CCS Hub, not only to secure the
programme. It aims to reach peak CO2 emis- option to reduce the emissions from our expand-
sions by 2028 and achieve carbon neutrality by ing Nanhai petrochemical plant and other indus-
2050. China has targeted carbon neutrality for trial players in the area, but also to help integrate
2060. and scale up Shell’s growing low-carbon energy
The study will include an assessment of offerings in the country,” Mascolo said.™

Week 26 01•July•2022 www. NEWSBASE .com P7