Page 12 - AsianOil Week 20 2021

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Japex exits Canadian shale gas project

FINANCE & JAPAN Petroleum Exploration (Japex) has Corp. (IOC) will own 10% and Petroleum Bru-
INVESTMENT agreed to sell its 10% stake in a Canadian shale nei will have 3%.
gas project to Malaysia’s state-owned Petronas “As a result of this transaction, Japex expects
for an undisclosed figure. to record an extraordinary loss of approximately
Japex said on May 13 that overseas subsidiary CAD493mn [$408.8mn] in the consolidated
Japex Montney Ltd (JML) had signed a contract financial results for the second quarter of the
to sell its stake in the North Montney joint ven- fiscal year ending March 31, 2022,” the Japanese
ture to project operator Petronas Energy Canada developer said.
Ltd (PECL), with the deal expected to be final- It added that the impact of the sale had
ised by the end of June. already been reflected in its forecast of consol-
The Japanese developer said it had been moti- idated business performance for financial year
vated to exit the project amid emerging structural 2021-2022.
challenges in the upstream segment, brought about The North Montney venture had intended to
by both the coronavirus (COVID-19) pandemic as provide gas for the Pacific North West LNG pro-
well as the global shift towards decarbonisation. ject, which was cancelled in 2017 owing to envi-
The company noted that it had formulated a ronmental concerns and low prices. Japex said
mid-term business plan in 2018 that focused on the export project’s cancellation had not affected
achieving sustainable growth amid oil prices of its decision to exit the project.
$50-60 barrel. The developer said: “Even after the deci-
It added: “Based on the recognition, our E&P sion not to proceed with the LNG project
projects have been striving to improve their prof- in July 2017 due to changes in the business
itability by optimising the business portfolio, environment, Japex has been working with
including the sale of the asset.” PECL and its partners to maximise the value
The deal will see Petronas’ interest increase of the NM project by optimising the devel-
to 72%, while Sinopec will hold 15%, Indian Oil opment plan.”™

OCEANIA

AGN blends green hydrogen into SAgas grid

PIPELINES & AUSTRALIAN Gas Networks (AGN) has begun The executive added that HyP SA demon-
TRANSPORT blending green hydrogen into its natural gas grid strated the low carbon future of the country’s
in South Australia following the official open- gas industry as well as the “important role the
ing its AUD14.5mn ($11.3mn) Hydrogen Park nation’s gas networks will play in meeting the
South Australia (HyP SA). decarbonisation challenge”.
The company said on May 19 that the facility, AGIG views HyP SA as template for the
which is located south of Adelaide at the Tons- conversion of its entire gas network to be
ley Innovation District, would allow it to blend able to distribute renewable hydrogen. It said:
around 5% renewable hydrogen into its existing “We are now focused on developing plans to
gas network. AGN intends to deliver blended gas deliver a complete carbon-free gas supply for
to more than 700 homes. our customers.”
The HyP SA facility includes a 1.25-MW However, proponents of 100% hydrogen dis-
proton exchange membrane (PEM) electrolyser tribution networks are still to prove that a switch
capable of producing around 175 tonnes per year away from gas is both possible and viable. One
(tpy) of hydrogen. often cited issue is hydrogen embrittlement,
The CEO of AGN parent Australian Gas wherein metal gas pipes and appliances will
Infrastructure Group (AGIG), Ben Wilson, said crack, requiring pipeline and residential gas sys-
the completion of HyP SA was an important tem upgrades.
milestone in South Australia’s renewable gas As the global shift towards decarbonisation
journey. gains momentum, however, Australia’s energy
“HyP SA is an Australian first and one of planners, gas producers and utilities are increas-
only a few projects in the world to deliver a ingly looking for growth opportunities in a fossil
renewable gas blend to homes connected to fuel-free future. In March, for example, the SA
an existing gas network,” Wilson said. “The government signed a memorandum of under-
hydrogen produced at HyP SA shows how we standing (MoU) with the Port of Rotterdam
can use the state’s abundant solar and wind Authority in the Netherlands to explore the pos-
resources to deliver carbon-free gas to homes sibility of exporting green hydrogen to Europe’s
and businesses.” largest port.™

P12 www. NEWSBASE .com Week 20 20•May•2021