Page 9 - GLNG Week 49

GLNG ASIA GLNG
Report: Singapore’s LNG imports to more than triple by 2028
PERFORMANCE
SINGAPORE’S imports of LNG are forecast to more than triple by 2028, according to a new report by Fitch Solutions. Imports of the super- chilled fuel are also set to displace pipeline gas imports by 2026, the report said.
This comes as Singapore’s government pro- motes the use of LNG for both power generation and shipping, as part of a broader push for the use of natural gas to meet the country’s goals for emissions cuts and decarbonisation.
Indeed, Singapore’s power sector has already increased gas-fired generation capacity to account for 97% of its overall generation mix. The sector is predominantly anticipated to source its gas from LNG imports.
Meanwhile, the shipping industry is prepar- ing for the International Maritime Organisation (IMO) 2020 rules to be implemented on Janu- ary 1, 2020. These rules are seeking to cut sul- phur emissions from fuel used by the shipping sector to 0.5%, from 3.5% permitted currently. While there are several obstacles to converting
vessels to burn LNG instead of fuel oil, the loom- ing implementation of the new regulations has nonetheless encouraged many in the shipping industry to turn to LNG.
“Amongst Asia’s net LNG importers, Sin- gapore’s LNG uptake growth will be the most robust, surpassing the likes of Bangladesh, India and Pakistan,” the Fitch report stated.
Singapore is planning to build a new floating regasification plant in the next 10 years as it prepares to accommodate its ris- ing imports of LNG. It is one of a number of Asian countries turning increasingly to float- ing infrastructure.
According to data from Singapore’s Energy Market Authority, the country imported 9.96mn tonnes of oil equivalent of natural gas in 2018, of which 71.4% was pipeline gas from Indonesia and Malaysia, while 28.6% was LNG. This already marks an increase, as the share of LNG in Singapore’s gas demand was at around 11% in 2013.™
AUSTRALASIA
Australia commits to gas reserve scheme
POLICY
The Australian government has the power to limit exports from LNG projects that run in deficit to the local market.
AUSTRALIAN Federal Resources Minister Matt Canavan said last week that the govern- ment was ready to implement a national gas reservation scheme in order to lower prices on the east coast.
Canavan said on December 5 that the east coast gas market’s largest reported quarterly gas surplus since liquefied natural gas (LNG) exports from Queensland began in January 2015 was the result of the Coalition government’s policies. These include the introduction of the Australian Domestic Gas Security Mechanism (ADGSM) in July 2017, which gives the government the power to limit exports from LNG projects that run in deficit to the local market.
Consultancy EnergyQuest said in its Decem- ber report that gas production on the east coast had climbed to 500.1 petajoules (13.03bn cubic metres) in the third quarter. It noted that while LNG exports had increased by 9.1 PJ (237.04mn cubic metres), the market still enjoyed a surplus of 17 PJ (442.83 mcm). This compares with a deficit of 17.9 PJ (466.27 mcm) in the corre- sponding period of 2018.
Acknowledging industry’s mounting frus- tration over stubbornly high gas prices, the minister said he was “focused on keeping gas
prices down so we have a vibrant manufactur- ing and processing sector in rural and regional areas”.
He said: “[Western Australia] has shown that a successful LNG export industry can sur- vive and thrive with a gas reservation policy. I will ensure that gas is available and affordable for industry on the east coast as well and will work with states and the Northern Territory and industry to implement a national gas reservation scheme.”
WA’s gas reserve policy ringfences 15% of production from export projects for the local market and has been in place for many years.
EnergyQuest said short-term east coast gas prices had averaged AUD8.23 ($5.65) per giga- joule in the quarter, down 7.8% year on year and 13.1% quarter on quarter.
Canavan also took the opportunity to criti- cise the local government in Victoria, which has banned all onshore exploration in the state.
“The Andrews government seems intent on shutting down industries, from vegetable processors to aluminium smelters operating in regional areas of Victoria while they pander to green activists and Greens in inner city Mel- bourne,” said Canavan.™
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