Page 11 - AsianOil Week 35 2021

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Inpex seals carbon-neutral gas supply deals

PROJECTS & JAPANESE oil and gas developer Inpex has solution to the social need of utilising natural gas
COMPANIES announced two new carbon-neutral natural in a cleaner manner.”
gas supply agreements with Shizuoka Gas and The deal with Shizuoka Gas was
Iruma Gas. announced a day after Inpex revealed it
Inpex said on September 1 that it had agreed had reached a carbon-neutral gas sales
to supply a roughly 70,000-tonne shipment of and purchase agreement (SPA) with Iruma
liquefied natural gas (LNG) fuel to Shizuoka Gas. Inpex said the utility would buy car-
Gas via the Sodeshi LNG terminal in Shizuoka bon-neutral gas and reduce its headquar-
Prefecture. ters’ carbon footprint.
Inpex added that the carbon footprint of the Inpex added: “Through the realisation of a
shipment, which is slated to arrive on September smart energy network for a carbon-free soci-
4, had been offset using carbon credits applied ety and the sales and promotion of the carbon
to greenhouse gas (GHG) emissions across the neutral gas, Iruma Gas will contribute to the
entire gas supply chain. This includes upstream reduction of CO2 emissions and the sustainable
production, liquefaction, transportation, regas- growth of communities.”
ification, marketing and combustion by custom- Iruma City is one of 444 local governments
ers in Japan. to have pledged to reach net-zero carbon emis-
The company added that the carbon credits sions by 2050, a target Inpex adopted in its 2050
met the Verified Carbon Standard deriving from business development strategy that was released
GHG reduction efforts at global forest conserva- in January 2021.
tion projects. Inpex announced in July a similar deal with
Inpex revealed in January that it had adopted the Joetsu City Gas and Water Bureau in Niigata
the government’s goal of reaching net-zero Prefecture, which would see the bureau buy
carbon emissions by 2050. Commenting on its carbon-neutral gas from Inpex from July until
deal with Shizuoka Gas, Inpex said: “This car- March 2026. This would allow the bureau to con-
bon-neutral LNG shipment is aligned with this vert some of the gas it supplies to Arisawa Manu-
[2050] strategy and is an initiative to provide a facturing to carbon-neutral gas.™

OCEANIA

Senex signs gas sales agreement with Opal

PROJECTS & AUSTRALIAN independent Senex Energy has The country’s leading upstream industry
COMPANIES signed a gas sales agreement with local packag- body, the Australian Petroleum Production and
ing and paper manufacturer Opal for up to 12 PJ Exploration Association (APPEA), hailed the
of gas over a six-year window. deal as “further proof the market is working”
The developer said on September 2 that under the APPEA CEO Andrew McConville said: “Gas
initial four-year agreement, which starts on January 1, means jobs. Natural gas helps to make so many
2023, it would provide around 8 PJ of gas to support of the things we use in our everyday lives. This
Opal’s manufacturing operations at Botany, New signifies the 107th deal since December 2012 to
South Wales. Senex did not provide details on pricing, supply gas to domestic customers – from build-
noting only that the contract included a fixed price that ing supplies to fertiliser to the packaging and
was in line with current market levels. paper produced at Opal.”
The agreement also includes an option to He argued: “Domestic users are paying less for
extend the contract extension for up to two years Australian gas over the long term than overseas mar-
and by a further 4 PJ of sales, which Senex said kets and have been doing so for some time. However,
would provide Opal with some “flexibility in the everyone knows the cheapest gas is the gas closest to
medium term as it continues to explore long- markets and if some states opened the door to gas,
term energy solutions”. prices could be even lower over the long term.”
Commenting on the deal, Senex managing direc- His comments came a little more than a week
tor and CEO Ian Davies said: “The agreement broad- after APPEA warned the Victorian State govern-
ens Senex’s reach in supplying natural gas throughout ment not to “scapegoat gas” as it draws up its gas
the East Coast, with our Surat Basin gas to support substitution roadmap.
industry in New South Wales for the first time.” “The Victorian Government is sensibly thinking
The independent has signed around 70 PJ about its future energy mix, but simply taking natural
worth of gas sales agreements since 2019, with gas out of the picture does nothing but make Victoria’s
buyers including CSR Building Products, Alinta energy security more unreliable,” APPEA Victorian
Energy and Southern Oil Refining. director Ashley Wells said on August 24.™

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