Page 9 - MEOG Week 03 2021

MEOG POLICY MEOG

QP raises climate ambitions

QATAR QATAR Petroleum (QP) launched a new sus- of climate change by implementing measures
tainability strategy last week, targeting a 25% to curb emissions, produce LNG using the lat-
reduction in the emissions intensity of its LNG est proven carbon reduction technologies, and
facilities by 2030. compensating for residual emissions where
The national gas company is among a number necessary.”
of LNG exporters across the world taking steps The strategy has three main pillars: climate
to address their environmental impact, as inves- change mitigation, operational responsibility
tors and buyers grow increasingly climate-con- and social and economic development. It is in
scious. The world’s biggest LNG producer is also line with Paris Agreement goals, QP said.
looking to cut its upstream emissions by at least
15% and reduce flaring intensity by over 75% QP’s clear advantage
within ten years. It has set its emissions in 2013 The concept of carbon-neutral LNG is being
as a baseline for the cuts. talked about with increasing frequency. It
Furthermore, QP, wants to end routine flar- accounts for only a miniscule fraction of the
ing by 2030 and limit fugitive methane emissions LNG market to date, but will likely grow, though
across the gas value chain by setting a methane the industry will need to take care to balance
intensity target of 0.2% across all facilities by decarbonisation with cost-competitiveness.
2025. It already spent some $900mn on reducing Here is where QP has a clear advantage. The
flaring between 2012 and 2018, and has pledged company boasts that it has the lowest production
a further $170mn for the cause between 2018 costs, which explains why it has embarked on a
and 2021. massive expansion of its liquefaction capacity
QP estimated its equity upstream emissions at a time when many suppliers are postponing
at 28.1mn tonnes of CO2 equivalent in 2019, projects.
while total emissions were 39.1mn tonnes. Like The North Field East (NFE) project will raise
some of its rivals, it too is looking to sequester QP’s production from 77mn tpy at present to
CO2 at some of its export facilities. 110mn tpy, with first gas scheduled for 2025. The
The Qatari government revealed in October North Field South (NFO) will ramp up capacity
2019 that it had a plant in operation capable of further, to 126mn tpy, by the late 2020s.
capturing and storing some 2.1mn tpy of CO2 But as the company’s output increases so
from LNG facilities. too will its CO2 sequestering needs. To meet its
It aims to ramp the plant’s capacity to 5mn tpy climate goals, then, QP will need to ensure that
by 2024 and 7mn tpy by 2027, hailing the project CO2 capturing and storing plans progress at the
as the largest CCS investment in the Middle East same pace as its expansion drive.
and North Africa. QP is using other methods to scale back its
QP also wants to establish 4 GW of renewable CO2 footprint. In November last year it signed
energy capacity in Qatar, which should curtail a 10-year contract to supply 1.8mn tpy of LNG
emissions by a further 5mn tpy, it said. to Singapore’s Pavilion Energy. The company
Qatari Energy Minister and QP CEO Saad hailed the deal as the first “with specific envi-
Sherida Al-Kaabi said the strategy was a “bold ronmental criteria and requirements designed
commitment with clear goals and milestones to ultimately reduce the carbon footprint of the
that ensure we embed sustainability considera- LNG supplies.”
tions into the way we plan and manage our entire Each cargo shipped to Pavilion will detail
business and operations.” how much CO2 was emitted in its production.
The plan will “shape our actions and the way Although there is no obligation for carbon
we operate over the next decade,” he said. It will offsets, the intent is there to reduce emissions,
“play a decisive role in helping reduce the impact Pavilion said at the time.™

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