Page 11 - AsianOil Week 09 2022

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Taiwan’s CPC increases LNG

price for power generators

POLICY TAIWAN’S state-owned CPC on February 28 the Taipei Times quoted CPC spokesman Ray
increased the price of LNG going to electricity Chang as saying. He said the domestic supply
generators by 10% for the month of March, the of LNG remained stable, but added that world
Taipei Times reported. The move comes as Rus- market prices had exceeded CPC’s procurement
sia’s invasion of Ukraine hits energy markets, costs.
causing the prices of oil and gas to soar. CPC reported a loss of TWD43.4bn
CPC has sought to keep gas prices stable as ($1.55bn) in 2021, and its loss for 2022 is
part of government policy to put a lid on rising expected to be even higher due to higher LNG,
consumer costs, which climbed by 2.84% in Janu- the daily suggested.
ary, exceeding the Central Bank’s target cap of 2%. Following the invasion of Ukraine in late
However, the price of LNG for power gener- February, Taiwan’s Ministry of Economic Affairs
ation has been bumped up in the face of rising said the country does not face an imminent risk
prices in recent months, with the government to energy supply as it has sufficient stocks of oil
absorbing the extra cost. The price of LNG sold and LNG.
for power generation on the island was raised Minister Wang Mei-hua said the island buys
by 3% in August and September in 2021 as gas LNG primarily from Qatar, Australia and Indo-
prices began to rise on the international market. nesia, and that LNG deliveries had been follow-
The CPC hiked LNG prices by 5% in November ing monthly shipment schedules. Wang said
and December 2021 and by 10% in January this Russia was one of Taiwan’s suppliers, but that that
year. contract was due to expire in March. After that,
“We are keeping LNG prices unchanged for he said, Taiwan would either sign new contracts
industrial and household users since June last with potential suppliers or acquire LNG on the
year, despite the uptrend in global LNG market,” spot market.™

OCEANIA

Santos signs MoU for Australian CCS projects

ENERGY AUSTRALIA’S Santos on February 28 In February, Santos announced that it had
TRANSITION announced that it had signed a memorandum booked carbon storage in depleted gas reservoirs
of understanding (MoU) with South Korea’s in the Cooper Basin in South Australia. The stor-
SK E&S and several other South Korean firms. age resource is estimated to hold 100mn tonnes
Under the agreement, the companies will jointly of CO2 and is meant to serve the AUD220mn
support and collaborate in the development of ($162mn) carbon capture and storage project
carbon dioxide (CO2) storage facilities in Aus- at Moomba. In partnership with Beach on that
tralia and the surrounding region, including project, Moomba CCS is expected to capture and
Timor Leste. store 1.7mn tonnes per year (tpy). The storage
Besides SK E&S, which is partnered with San- facility will become operational in 2024.
tos in the Barossa Gas Project and Darwin LNG, Santos said a CCS project at Bayu-Undan in
the MoU includes K-CCUS Association and Timor Leste would have the potential capacity
Korea Trade Insurance. Australia’s CO2CRC, to permanently store some 10mn tpy of CO2.
the country’s leading carbon capture, utilisation Santos will use the depleted gas reservoirs at
and storage (CCUS) research organisation is also Bayu-Undan to capture the emissions from the
in the group. CO2CRC also conducts research $3.6bn Barossa gas and condensate develop-
in clean hydrogen, direct air capture and car- ment. A final investment decision (FID) was
bon-negative bio-refineries. made by operator Santos in March 2021.
Kevin Gallagher, managing director and The project is located offshore Australia’s
CEO of Santos, said in a statement that the Northern Territory. The FID marked the start of
MoU highlights the growing momentum a $600mn investment in Darwin LNG life exten-
and action to reduce carbon emissions in the sion and pipeline tie-in projects that will extend
Asia-Pacific. “Increased deployment of carbon the life of Darwin LNG by some 20 years. The
capture and storage is critical to achieve the plant has a 3.7mn tpy capacity.
world’s climate goals,” he said, adding that the Santos expects to capture and store around
agreement would strengthen the partnership 2.7mn tpy of CO2 from Barossa and Darwin
with SK E&S. LNG.™

Week 09 04•March•2022 www. NEWSBASE .com P11