Page 7 - AsianOil Week 19 2022

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SK E&S invests in US CCS project

ENERGY SUMMIT Carbon Solutions’ carbon capture pipeline. It will then be permanently sequestered
TRANSITION and storage (CCS) project in North Dakota in “extensively researched subsurface geologic
received a boost this week on the announce- formations”.
ment that South Korean power utility and gas Summit began developing plans for the
provider SK E&S would invest $110mn in the facility in 2019 and launched the project early
scheme. last year. In March, Continental Resources
The investment will give SK E&S a 10% stake announced it would invest $250mn in the
in Iowa-based Summit, a biofuel and renewable development. This week, Summit said its equity
energy firm. Summit’s CCS project is aimed at fundraising efforts had been completed, hav-
capturing and storing up to 12mn tonnes per ing resulted in over $1bn in total equity com-
year (tpy) of carbon dioxide (CO2) from 32 corn mitments. The figure appears to include SK
ethanol plants in Iowa, Nebraska, Minnesota, E&S’ investment, as well as a newly announced
North Dakota and South Dakota. The project $300mn from TPG Rise Climate.
has the potential to be expanded to handle up to For SK E&S, a unit of SK Group, the move
20mn tpy of CO2. is part of a broader push to embrace the energy
Construction of the facility and the pipeline, transition, and one of a few separate CCS initia-
which Summit says will be the largest of its kind, tives. The company is also planning to develop
is expected to begin in the first half of 2023. The CCS at the Barossa gas project in Australia, in
company is targeting start-up for the second half which it partners with operator Santos. Addi-
of 2024. tionally, it is planning to use CCS to produce blue
According to Summit, the CO2 will be aggre- hydrogen at a domestic plant that it is currently
gated and transported to North Dakota via constructing in South Korea.™

SOUTH ASIA

India snapping up discounted Russian LNG

POLICY INDIAN companies are taking advantage of
cheap prices on the spot market for Russian LNG
while many other importers are avoiding cargoes
of Russian origin owing to the war in Ukraine.
Sanctions have yet to be placed on Russian gas
by the European Union and other countries
but numerous financial sanctions have been
imposed on Russia since its invasion of Ukraine
on February 24.
The EU is currently considering a further
round of sanctions against Russia, including
on energy, and it is anticipated that such action
could push international energy prices higher
still. Halting purchases of Russian hydrocarbons
is viewed by the West as the most effective way to The situation is exacerbated by the fact that
put pressure on the Russian economy but comes electricity demand has created a domestic coal
with considerable challenges. shortage, forcing some Indian power generators
Many countries have already taken action to to buy LNG cargoes. India normally produces
stop imports of Russian oil, coal and gas, hence about 70% of its electricity from coal, while gas
Russia’s discounted prices on offer to those that accounts for around 6%.
are still willing to buy its energy. Gujarat State Petroleum and GAIL (India) are
About three-quarters of India’s LNG deliver- two Indian firms that have made spot purchases,
ies arrive under long-term contracts. But owing and others are reported to be making inquiries
to a continuing heat wave in the subcontinent about purchasing Russian spot LNG. India is
that is causing power cuts, the country is topping expected to continue making purchases of Rus-
up gas supplies by purchasing Russian spot car- sian gas as long as prices remain reduced.
goes that are selling at lower prices than cargoes Russia continues to deliver LNG cargoes to
of different origins. India’s electricity demand buyers under contract conditions, but some reg-
has soared as temperatures have exceeded aver- ular customers that buy Russian spot LNG, such
ages for this time of year. The country is also tak- as Japan and South Korea, have stopped making
ing advantage of discounts on Russian oil. those purchases.™

Week 19 13•May•2022 www. NEWSBASE .com P7