Page 10 - GLNG Week 43 2020

GLNG COMMENTARY GLNG

NextDecade has been
working on reducing
emissions from Rio
Grande for at least the
last few months, having
redesigned the terminal.

accounts for a mere fraction of French electric- This has come as the global LNG market has
ity – only 0.3% last year. become increasingly oversupplied, making
France’s ban on fracking on its own soil in competitive advantage all the more important.
2017 was symbolic, as the country has barely In NextDecade’s case, the company hopes that
any domestic oil and gas resources. For sev- dramatically lowering its emissions will make its
eral years, lawmakers have called for a ban on output more attractive in a world that is pivoting
fracked imported gas, but this would be very towards lower-carbon options.
hard to implement. Recently the government A handful of developers globally are also
also proposed phasing out state export guaran- talking up the lower emissions profiles of their
tees for all oil projects by 2025 and all gas ven- facilities. The Royal Dutch Shell-led LNG Can-
tures by 2035. ada is pursuing a similar goal, and plans for its
emissions to be 35% lower than the world’s best
Lowering emissions performing facilities and 60% lower than the
It is unclear whether there is any connection global weighted average among already opera-
between French actions and an announcement tional facilities. And another net-zero emissions
by NextDecade on October 6 that it would strive project is potentially on the table in the US. G2 Cutting direct
to reduce anticipated CO2 emissions at Rio Net-Zero LNG, launched earlier this year, is
Grande by 90% using carbon capture and stor- proposing an $11bn project in Louisiana to liq- emissions –
age (CCS) technology and other processes. The uefy and export natural gas, as well as producing known as Scope
company said it was also exploring options to industrial gases, with net zero greenhouse gas
address the remaining 10%. (GHG) emissions from 2026. 1 emissions
What is known, however, is that NextDecade Like NextDecade, G2 Net-Zero LNG is pro-
has been working on reducing emissions from posing a CCS component to its project. And – from a given
Rio Grande for at least the last few months. Prior the two companies are not alone in turning to
to the latest announcement, the company said in CCS alongside liquefaction. State-owned Qatar liquefaction
July that it had redesigned Rio Grande to com- Petroleum (QP) is also building a CCS facility facility may not
prise more efficient trains that would result in alongside its expansion of liquefaction capacity,
lower CO2 emissions. while such a facility already exists at Chevron’s be enough.
The new plan envisaged five trains instead of Gorgon LNG project in Australia. The project’s
six, still producing a combined 27mn tpy but start-up was significantly delayed as a result of
resulting in 21% fewer CO2 emissions. This has technical challenges but it has stored more than
since been superseded by the latest proposal, 3mn tonnes of CO2 to date.
which aims for carbon neutrality. However, it However, the reported delay in Engie’s
illustrates ongoing efforts by NextDecade to deal with NextDecade illustrates that cutting
gain a competitive edge by positioning itself as direct emissions – known as Scope 1 emis-
a low-emissions – or no-emissions – producer sions – from a given liquefaction facility may
of LNG. not be enough.™

P10 www. NEWSBASE .com Week 43 30•October•2020