Page 5 - AsiaElec Week 36 2021

AsiaElec COMMENTARY AsiaElec

will be connected by offshore pipeline to the decarbonising LNG through CCS.
Tangguh LNG facilities. Nonetheless, the push to develop CCS capac-
The front-end engineering and design ity in tandem with LNG is picking up momen-
(FEED) work for the Ubadari and Vorwata tum, including among other companies active
CCUS developments is due to start in mid-2022, in Indonesia. Earlier in August, Japan’s Inpex
subject to Tangguh partners’ and further SKK pushed back an FID on the Abadi LNG project,
Migas approval. If an FID follows, the project attributing the delay in part to the pandemic, but
could enter service in 2026. also saying it may consider redesigning the pro-
The regulatory approval comes as BP pursues ject to have a CCUS component.
its goal of net-zero emissions by 2050, with inter- In the US, meanwhile, Venture Global LNG
mediate targets to be met along the way as well. recently unveiled plans to develop CCS capacity
“These developments demonstrate how to serve its Calcasieu Pass liquefaction terminal
Tangguh continues to be a strategic fit in BP’s – which is currently under construction – and its
portfolio,” stated BP’s executive vice-president proposed Plaquemines LNG plant.
for gas and low-carbon energy, Dev Sanyal. While it will take time for the CCS capacity
“Ubadari is a clear example of a value-focused to be built, this puts Venture Global on course
gas development. And the Vorwata CCUS-EGR to become the first US LNG producer to deploy
project will be a significant milestone for BP, with CCS. Cheniere Energy and Sempra Energy have
the potential to make a material contribution to also suggested that they would consider options
our aims to reduce operational emissions.” for developing CCS at their US LNG plants,
Tangguh is currently the largest gas pro- which are already operational. Again, though,
ducing field in Indonesia, with output of 1.4bn this will take time.
cubic feet (39.6mn cubic metres) per day. The CCS would also be a component of plants
liquefaction plant comprises two trains, each that are being proposed for the US Gulf Coast
with a capacity of 3.8mn tonnes per year (tpy). by NextDecade and G2 Net Zero LNG. These
A third train is under construction, but has seen plants are not guaranteed to be built – indeed,
delays as a result of the coronavirus (COVID-19) NextDecade’s Rio Grande LNG recently suffered
pandemic. SKK Migas said in June that it now a blow when a court ordered a review of the pro-
expected Train 3 to enter service in mid-2022. ject’s environmental impact. Nonetheless, CCS
increasingly appears to have a role to play at new
CCS push LNG terminals – and potentially existing ones
CCS technology has yet to be proved on a large too.
scale, including when combined with LNG Once more LNG-CCS projects are built, it
operations. Indeed, Chevron’s failure to meet will become clearer whether others can be more
its carbon capture targets at Gorgon thus far are successful than Chevron has been at Gorgon at
seen by some as a sign that does not bode well for capturing emissions.™

Week 36 08•September•2021 www. NEWSBASE .com P5