Page 5 - GLNG Week 35 2021

GLNG COMMENTARY GLNG

The use of CCS,
including for LNG
projects, has yet to be
proven on a large scale.

Migas approval. If an FID follows, the project capacity in tandem with LNG is picking up
could enter service in 2026. momentum, including among other companies
The regulatory approval comes as BP pur- active in Indonesia. Earlier in August, Japan’s
sues its goal of net-zero emissions by 2050, with Inpex pushed back an FID on the Abadi LNG
intermediate targets to be met along the way as project, attributing the delay in part to the pan-
well. demic, but also saying it may consider redesign-
“These developments demonstrate how ing the project to have a CCUS component.
Tangguh continues to be a strategic fit in BP’s In the US, meanwhile, Venture Global LNG
portfolio,” stated BP’s executive vice-president recently unveiled plans to develop CCS capacity
for gas and low-carbon energy, Dev Sanyal. to serve its Calcasieu Pass liquefaction terminal
“Ubadari is a clear example of a value-focused – which is currently under construction – and
gas development. And the Vorwata CCUS- its proposed Plaquemines LNG plant.
EGR project will be a significant milestone for While it will take time for the CCS capacity The push to
BP, with the potential to make a material con- to be built, this puts Venture Global on course
tribution to our aims to reduce operational to become the first US LNG producer to deploy develop CCS
emissions.” CCS. Cheniere Energy and Sempra Energy have capacity in
Tangguh is currently the largest gas produc- also suggested that they would consider options
ing field in Indonesia, with output of 1.4bn cubic for developing CCS at their US LNG plants, tandem with
feet (39.6mn cubic metres) per day. The lique- which are already operational. Again, though,
faction plant comprises two trains, each with a this will take time. LNG is picking
capacity of 3.8mn tonnes per year (tpy). A third CCS would also be a component of plants
train is under construction, but has seen delays that are being proposed for the US Gulf Coast up momentum,
as a result of the coronavirus (COVID-19) by NextDecade and G2 Net Zero LNG. These including among
pandemic. SKK Migas said in June that it now plants are not guaranteed to be built – indeed,
expected Train 3 to enter service in mid-2022. NextDecade’s Rio Grande LNG recently suf- other companies
fered a blow when a court ordered a review of
CCS push the project’s environmental impact. Nonethe- active in
CCS technology has yet to be proved on a large less, CCS increasingly appears to have a role to
scale, including when combined with LNG play at new LNG terminals – and potentially Indonesia.
operations. Indeed, Chevron’s failure to meet existing ones too.
its carbon capture targets at Gorgon thus far are Once more LNG-CCS projects are built, it
seen by some as a sign that does not bode well for will become clearer whether others can be more
decarbonising LNG through CCS. successful than Chevron has been at Gorgon at
Nonetheless, the push to develop CCS capturing emissions.™

Week 35 03•September•2021 www. NEWSBASE .com P5