Page 12 - AsianOil Week 48 2022

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Saudi Arabia backs Thai green hydrogen

PIPELINES & SAUDI Arabia’s ACWA Power is giving its sup- The country benefits from solar irradiation of
TRANSPORT port to one of Thailand’s first major green hydro- around 2.64-3.88 kWh per second, and average
gen projects, priced at some $7bn in investment. wind speeds of around 6.15 metres per second.
It is one of Thailand’s Thai state-owned oil company PTT has At present, the country has only 1.5 GW of wind
first major green signed a memorandum of understanding and 3.5 GW of solar power generation installed,
hydrogen projects. (MoU) with ACWA on developing a renewa- representing only 12% of its power mix.
ble energy-powered facility capable of produc- Thailand is striving towards net zero by 2065,
ing 225,000 tonnes per year of green hydrogen. although the government has yet to elaborate
That would be the equivalent to 1.2mn tpy of on how great a role green hydrogen will play in
green ammonia production, ACWA said, with- realising this ambition. But what is considered
out specifying the ratio between hydrogen and the most useful application is the Thai refining
ammonia production. sector, where local firm TOP, owned by PTT,
ACWA anticipates that the project would purchased a stake in US electrolyser start-up
cost $7bn, but precise details about its scope, Versogen earlier this year.
and even where it would be located, are yet to be In the electricity sector, it is less clear how
revealed. But the plan is to provide Thailand with hydrogen could play a role. Thailand currently
hydrogen as a “new alternative energy source,” relies heavily on natural gas and coal for its
and possibly support hydrogen and ammonia power supply, as well as a lot of oil for its pri-
exports. mary energy. Hydrogen could be employed for
Thailand has strong renewable potential, even the transport sector, and not only industrial
though it has yet to be significantly exploited. uses. ™

Indonesia mulls re-awarding

East Natuna block

PIPELINES & INDONESIA’S government is considering lies within a maritime area that is claimed by
TRANSPORT once again offering exploration rights to the China.
giant East Natuna Block off the country’s coast, Natuna D Alpha was first discovered by
The project has been Indonesian Energy Minister Arifin Tasrif said AGIP, which later became part of Italy’s Eni,
under discussion for last week. 1973. Pertamina then formed a joint venture
decades. The block, previously referred to as Natuna with ExxonMobil to develop the field in 1980,
D Alpha, contains an estimated more than 5.6 but given the high CO2 content, the partners
trillion cubic metres of in-place gas, but with a concluded that production was not possible ini-
CO2 content of over 60%, according to Wood tially. In 1995, Indonesia’s government signed a
Mackenzie, which means that its development contract to develop the find with ExxonMobil,
would also require carbon capture and storage but that deal was terminated in 2007, and the
(CCS) technology. Total proven reserves of gas following year the block was awarded to Per-
are assessed at 1.3 tcm. tamina on its own. ™
Pertamina currently holds rights to the
block, although it may be returned to the gov-
ernment and split into three separate blocks in
an upcoming auction. The timing of the contest
has not been announced yet.
The high CO2 content is an obvious con-
cern for development, given the added cost that
CCS technology would entail. But if the field is
exploited, it would have a significant impact on
the Asia-Pacific gas market. Indonesia would be
able to delay its shift to becoming a net importer,
rather than net exporter, of gas, and its neigh-
bours would gain from low-cost gas supply in
close proximity.
The field’s location, in disputed waters of the
South China Sea, represents another hurdle. It

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