天然氣聯(lián)盟：全球天然氣之聲：探索脫碳報(bào)告

GlobalVoiceofGas

BYTHEINTERNATIONALGASUNION

ISSUE3|VOL03

EXPLORING

DECARBONISATION

ThecaseforCCUSindecarbonisingLNG

Veritas:aconsistentapproachto

measuringmethane

Whatis

e-methane?

Policyiskeyfor

supportingLNGsupply:MidOceanEnergyCEO

MessagefromthePresident

Dearreaders,welcometothethirdquarterlyissueoftheGlobalVoiceofGasmagazinein2023.

Thisissue’sreleasefollowstheInternational

GasUnion’sAnnualMemberCouncilmeetingin

Perth,Australia,onOctober19,excellentlyhostedbyourvaluedCharterMember,theAustralianGasIndustryTrustworkingtogetherwithsupportof

theGovernmentofWesternAustralia.IamveryhappytohavehadtheopportunitytomeetwiththerepresentativesoftheentireIGUglobalgas

communityfacetofaceinsuchakeylocationfor

theglobalgasmarket,toreflectontheyear,discussfutureprioritiesandtoshapeastrongerglobalvoiceofgastogetherfor2024.

Thiswasatimelymeeting,giventhegreat

uncertaintythattheglobalgasindustrymustnavigateinthecomingyears.Themassivedisparityacross

internationalenergyoutlooksandscenariosforgasischallengingtheinvestmentsnecessaryforthemarkettocometoastablebalance.Thatiswhythe2023

GlobalGasReportwasdedicatedtoexaminingthis

uncertaintyindepthandtoexplorepathwaysfor

gasintheenergytransition.Uponcloseexaminationofvariousdegreescenariosassumptions,itisvery

clearthatapolicyre-thinkisneeded,andthelevelofinvestmentinnewgasprojectstodayisinsufficienttoreachanaffordable,secure,andsustainableenergysystemin2030andbeyond.

Itisalsoclearthatnaturalgaswillcontinue

playingakeyroleintheenergytransition,whilethe

gassectorwillalsocontinuetodecarbonise,andI

urgeanaggressiveaccelerationofdeploymentsin

carboncaptureandlow-carbonandrenewablegasestomakethatpossible.Thatwillrequirecollaborationacrossthegasindustryand,importantly,appropriatepolicytoolsandframeworks,includingpricing

emissionsandremovingbarrierstodeployment

andaccesstofinance.WithCOP28justaroundthecorner,thismessageisasimportantasever.

Thesecondhalfof2023hasbroughtrelief

tothegasmarketswithreducedprices,andthe

Europeanstorageatnearlyfulllevelaheadof

schedule.Yet,theenergycrisishasnotended,the

gasmarketsremaininanunstableequilibrium,as

thepricereductionscameatahighcostofdemand

destructionandthesupplyinthemarketremains

veryconstrained.Inthisregard,wehaveseen

positiveshiftsinfocustowardsecurityofsupply,

andIcommendtheexcellenteffortsbygovernments,

industry,andcustomers.However,knowingthat

securitymustworkinbalancewithaffordabilityand

sustainabilityforasuccessfulenergytransition,

furtherrebalancingisstillnecessary.

TheIGUfirmlybelievesintheneedtocooperate,

aswestrivetodoacrossthegasvaluechainand

acrosstheglobe,andintheneedtodosobetter

acrossthewholeenergyvaluechain.

Wehaveonlyoneplanetandtheglobalenergy

networksareconnectingenergyindustriesandthe

energyconsumers,whowantsecure,sustainable,

andaffordableenergy.Iamconvincedthat

decarbonisationofthevastglobalenergysystemsis

notgoingtobepossiblewithoutproductivedialogue,

cooperation,andsophisticatedplanningbasedon

achievabletargets.

Gasisandwillcontinuetobeanessentialpart

oftheglobalenergyecosystem,andthatdoesn’t

makeusneedlessrenewablesandotherlow-carbon

energytechnologies,anditdoesn’tmeanthatwe

shouldnotcontinuetolookforwaystoreduceour

consumptionofenergyasasociety.However,by

workingtogetherwecanachievemuchmoremuch

faster.

OCTOBER2023

2GLOBALVOICEOFGAS

27

Contents

FEATURES

17

ThecaseforCCUSin

decarbonisingLNG

21

LNG:goingall-electricisasite-specificoption

Veritas:aconsistent

approachtomeasuringmethane

30Whatise-methane?

37

Policyiskeyfor

supportingLNGsupply:MidOceanEnergyCEO

40

Naturalgashas

deliveredforIsrael

44

Aglobalgasmarketthatperforms

FromthePresident2

Editor’sNote

4

Events

6

RegionalUpdate

Africa

10

NorthAsia&Australasia

12

Europe

14

TheopinionsandviewsexpressedbytheauthorsinthismagazinearenotnecessarilythoseofIGU,itsmembersorthepublisher.Whileevery

carehasbeentakeninthepreparationofthismagazine,theyarenotresponsiblefortheauthors’opinionsorforanyinaccuraciesinthearticles.

OCTOBER2023

3

GLOBALVOICEOFGAS

Editors’Note

Welcometothe13thissueoftheGlobalVoiceofGas

magazine,anInternationalGasUnionpublication,

producedincollaborationwithNaturalGasWorld

(NGW).Thereleaseofthisissuecomesjustweeks

aheadofthekeyenergytransitionmilestone,theUNCOP28climatesummittakingplaceintheUnited

ArabEmiratesthroughthestartofDecember,whereworldleaderswillconvenetomeasureprogress

thathasbeenmadeinrealisingthegoalsofthe

ParisAgreement.Theworldisalreadyawarethat

thestocktakemaycomebacklessthanperfectforprogressingtheenergytransition,particularlyas

emissionscontinuedtorisein2022andtheenergycrisisforcedmanynationstoresorttomorecoal

andoilburning,astheylookedforalternativesto

mitigatethesurgingpricesofnaturalgas.However,

whatwillmattermostaretheconclusionsdrawn

fromthatandthedecisionsmadeonhowtocourse-

correct,whiletheemissionsreductiontargetsare

stillwithinreach.Optimally,thesedecisionswillbeinclusive,pragmatic,technology-neutral,takingintoaccountthefundamentalsofglobalenergy,capital,andcapacityendowments,tosettheworldupforanachievablesuccess.

Itisclearthatnaturalgasandthelow-carbon

gaseousenergyatlargemustberecognisedinthesepoliciesfortheircriticalroleintheglobalenergy

transition.Astheworldlookstoreduceemissionsinpower,buildings,industry,andthetransportsectors,whiledrasticallyscalingintermittentrenewable

generation,thereliability,flexibility,efficiency,andcost-effectivenessofgasmakeitanunmatched

resourceforasustainedandsustainabletransition.

Gasremainsthemostcost-effectiveavailable

resourceforgridresiliency,heavyindustrialactivity,and,inmanyregions,forenergyinbuildings.

ButthisissueofGVGfocusesonhowthe

environmentalvaluecanbefurtherenhanced,byaddressingmethaneemissionsmoreaggressively,deployinglow-carbontechnologiessuchas

carboncaptureutilisationandstorage(CCUS)and

electrification,andsupportingthedevelopmentof

low-carbongasessuchashydrogen,e-methaneandbiomethane.

Webegintheissuebylookingintoanew

reportfortheGlobalGasInnovationRoundtable,

establishedthisyearwithsupportfromtheCanadianGasAssociation(CGA),whichconcludesthatthe

suitabilityofCCUSasadecarbonisationoption

variesgreatlyacrossthegassupplychain,andthat

itisimportanttoconsidergeography,government

policy,andlocalindustrialcontextwhenplanningand

developingprojects.Theissuethenmovesontothe

caseforusingall-electricdrivesasameansofreducing

emissionsatLNGplants,andhowtheemissions

reductionsthatareachievabledifferbasedonhow

cleanagivencountry’spowergridis.

Wearealsoproudtoincludeaninterviewwith

AmandaHarmon,SeniorManageratGTIEnergy,

ontheorganisation’sVeritasinitiative–asetof

standardised,science-based,technology-neutral

protocolsforgettingatruemeasurementofmethane

emissionsassociatedwiththenaturalgasindustry.

Inaddition,wegiveourthankstoKokiHayakawa,

SecretaryGeneralandSeniorManagingDirectorof

theJapaneseGasAssociation,forsharingJapan’s

experienceindevelopinge-methaneasameansof

achievingaseamlesstransitiontoadecarbonised

society,loweringemissionswhilesupportingsecure

energysupplyandmakinguseofexistinggas

infrastructure.

DelaReyVenter,CEOofLNGplayerMidOcean

Energy,alsojoinedusforaninterview,inwhichhe

elaboratedontheroleofpolicyinrestoringthebalance

intheglobalLNGmarketandbringingmoresupply

tokeepupwithdemand,whiledrivingreductionsin

emissions.Furthermore,YossiRosen,Chairmanofthe

IsraeliInstituteofEnergyandEnvironment,meanwhile

takesusthroughthetransformationalimpactthat

naturalgashashadonIsraelsincedevelopmentbegan

adecadeago.

Wealsoprovideasummaryofthemainfindings

oftheInternationalGasUnion’sWholesaleGasPrice

Survey2023,whichtracksthechangesingaspricing

overtheyears,whiledemonstratingthecriticalityofa

well-functioningglobalgasmarketatwork.

TatianaKhanberg,

StrategicCommunicationsand

MembershipDirector,IGU

JosephMurphy,

Editor,NaturalGasWorld

OCTOBER2023

4GLOBALVOICEOFGAS

-

PRESENTEDBY

EVENTS

Timetocometogetherandcollaborateon

thesolutionsand

innovationsthat

gasesdeliver

RODNEYCOX

DirectorofEvents,

InternationalGasUnion

Thetwooccasionswhenconferencesareattheir

mostpowerfularewhenanindustryhaschallengesoropportunities.TodayourindustryfacesbothandIGU’s

FlagshipEventsareattheforefrontofdeliveringthe

knowledgeandwisdomneededtosecureourfuture.FirstupisIGRC2024,

IGU’sInternationalGas

ResearchConference–IGRC2024

,tobeheldin

CanadainMay2024.Withsomanyofthesolutionsandinnovationsrequiredcomingfromresearch,

developmentandinnovation,thetimingcouldnotbebetterforIGRC2024andIencourageyoutocheck

outthebenefitsforyourcompanyfromyouattendingtocollaborateandlearnalongsideyourpeersfrom

aroundtheworld.

Lookingahead,weareabouttoopentheCallfor

AbstractsforWGC2025Beijing.WiththeCallfor

AbstractsopeninginNovembernowisthetimetostartdiscussionswithyourcolleaguesandyourcompanyonsubmittinganabstract.Formoredetails,andtoensureyouarekeptuptodate,emailtheWGC2025team.

Finally,wetakeamomentto

lookbackon

LNG2023

inVancouverinJuly.QuitesimplythemosteffectiveeventallyearfortheglobalLNGindustry.AsMichaelStoppardfromS&PGlobalCommodityInsightsobserved,“LNG2023separatedthesignalfromthe

noise.”ThisiswhatIGU’sflagshipeventsdobest.

MAY13-16,2024|

WWW.IGRC2024.COM

HOSTEDBY

IGRC2024–Earlybirdregistration

nowopen!

SaveonregistrationbeforeNovember15,2023

InternationalGasResearchConference2024,IGU’s

flagshipevent,isbeingheldfromMay13-16,2024

attheFairmontBanffSprings,Canada.Joinusinthe

heartofthemajesticCanadianRockies,aUNESCO

WorldHeritageSite,foradynamicglobalconference

bringingtogetherthelatestresearch,leadingpractices

andtransformativeinsightsthatfuelinnovationwithin

thenaturalgasandgaseousenergyindustry.Allofthis

whileyouenjoyanexceptionaldelegateexperience.

Innovationiscriticaltokeepnaturalgasareliable,

affordable,andlow-emissionsourceofenergy.

6GLOBALVOICEOFGAS

OCTOBER2023

EVENTS

OCTOBER2023

7

GLOBALVOICEOFGAS

IGRC2024isexpandingitsfocusontechnicalresearch

toincludegasclean-tech,technologystart-ups,and

socialinnovation–alltoshowcaseglobalexamplesof

innovationanditspositiveimpactonboththesectorandsocieties.

IGRC2024offersauniqueopportunityfor

professionalsintheglobalgasandgaseousenergy

sectorstoconnect,collaborateanddelveintothecriticalroleofgasanditsinfrastructureinaddressingcomplex

energychallengesworldwide.

EarlyBirdRegistrationisnowopen,untilNovember15,2023.Byregisteringtoday,youwill:

?Saveonregistration:registerbeforeNovember15,2023,andunlocksavingsof$250USD.

?Accessthefullprogramme:youwillhaveexclusive

accesstoacomprehensiveprogrammethatincludeshigh-calibretechnicalsessions,strategicand

thought-provokingplenaries,leadershipdialoguesetc.

?Attendkeynotespeakersessions:Gaininvaluable

insightsfromourkeynotespeakers,whoaregloballyrenownedexperts.Theirenlighteningsessions

willhighlightthepivotalrolegasinnovationhasonsocietiesandindustries.

?Discovercutting-edgeresearch:Diveinto

groundbreakingresearchpresentedduringour

technicalsessionsandposterpresentations.You’llexploreleadingindustrypracticesanddiscover

transformativeinsightsthataredrivinginnovationwithinthegasindustry.

?Meetinnovativeexhibitors:beattheforefrontof

thegasindustry’sinnovation,bywitnessingleadingtechnologydisplayedbyourexhibitors.

?ExperienceCanada:immerseyourselfinCanadiancultureduringourthreenetworkingreceptions,

whereconnectionsandcollaborationswillthrive.

Registertodayandbepartofthisessentialdialogue.

EarlyBirdRegistrationclosesonNovember15,2023.JoinusatIGRC2024:Connect.Collaborate.Innovate.

Findoutmore!

ScantheQRcodetoaccesstheIGRC2024Registrationpage.ThereyouwillfindallEarlyBirdRegistration

details.Ifyourequireadditionalassistance,please

contactusat

igrc2024@cga.ca

.IGUmemberscanalsocontactSimonPolledriattheIGUSecretariatonsimon.

polledri@

PresentedByHostPartner:

WGC2025–CallforAbstracts

openssoon

IGU’sWorldGasConference,WGC2025Beijing,

providesauniqueopportunitytocontributeyour

experience,knowledgeandwisdom,andcollaboratewithyourpeersfromaroundtheworld.TheCallfor

AbstractsforWGC2025opensinNovember2023,to

provideampletimeforyoutoexploreyouroptionsanddiscusswithinyourcompany.

Therangeofthemeswillensurethatthereisan

opportunityforeveryindustryprofessionaltosubmit.Fromdevelopinganddeployingnewtechnologies

(fromE&Ptoutilisation),throughsupply,demand,

pricingandmarketing,thenewmomentumforLNG,

totransformation(whetherdigitaltechnologiesortheadoptionofnewgases),thereisanopportunityforyoutoleadthediscussionandmakeyourcontributiontoasustainablefutureforourindustry.

ForenquiriesregardingWGC2025CallforAbstractssubmissionsandtoensureyoureceiveregularlyupdatedinformationemailtheWGC2025team.

LNG2023–fuellingasecureenergyfuture

InJuly,thousandsofdelegatesfrom80countries

gatheredinVancouver,Canada,forLNG2023,the20theditionoftheworld’slargesttriennialLNGconferenceandexhibition.

MuchhadtranspiredsinceLNG2019Shanghai,

China.FromCOVID-19throughfalteringsupplychains,andrisinginflationtothecuttingofpipelinegasto

Europe–countriesgrappledwithenergysecurityandsupplyissues.

Itwasinthiscontextthatthecorethemeof

LNG2023—FuellingaSecureEnergyFuture—was

decided.Theconference’ssub-themesoffuelling

amorestable,cleaner,andmoreprosperousfuture

forallrecognisedthatenergysecurity,environmental

sustainability,andaffordabilitymustallbebalancedto

achievesmoothenergytransition.Asoneconference

speakernoted,ifweleantoohardinonedirection,we

riskacollapseoftheothers.

LNG2023continuedthelonghistoryofbringing

togetherseniorindustryleaders,government

representatives,technicalexperts,andkey

stakeholders.Thedailydiscussionswererich,lively,

pragmatic,and,aboveall,optimistic.TheLNGsector

iswellversedininnovation,andLNG2023attendees

expressedgreatconfidencethattheindustrywill

continuetouseitsstrengthsincreatingsolutions.

CheckoutsomeofthekeyoutcomesfromtheClosing

Plenary.

WenowlookaheadtoLNG2026inDoha,Qatar.

LNG2023continuedthelonghistoryof

bringingtogetherseniorindustryleaders,governmentrepresentatives,technical

experts,andkeystakeholders.

8GLOBALVOICEOFGAS

OCTOBER2023

SempraInfrastructureisnotthesamecompanyastheCaliforniautilities,SanDiegoGas&

Electriccompany(SDG&E)orSouthernCaliforniaGasCompany(SoCalGas),andSempra

InfrastructureisnotregulatedbytheCaliforniaPublicUtilitiesCommission.

?2023SempraInfrastructure.Allcopyrightandtrademarkrightsreserved.

REGIONALUPDATE

OCTOBER2023

10GLOBALVOICEOFGAS

250259168.5

150249162.5

9.6

9.4

58

53.9

Africa

KHALEDABUBAKR

Chairman,EgyptianGasAssociation.ExecutiveChairman,TAQAArabiaandIGURegionalCoordinator

NorthAfrica:Italyiscountingonthe

regiontoreplacelostRussiansupply,whileMoroccoisresortingtoLNGimportsand

IsraelispreparingtorampupsuppliestoEgypt.

?EniexpectsNorthAfrica–namelyAlgeria,EgyptandLibya–tobeItaly’smaingassupplierforthenextfewyears,helpingitreplacelostRussianvolumes.TheItalianenergygroup

intendstoinvest$3.5bnoverfouryearsinexplorationanddevelopmentinEgypt.

?MoroccoismeanwhileturningtoLNGimportsafterlosingitspipelinedeliveriesfromneighbouringAlgeria,which

soughttousethosedeliveriesasleverageinthedispute

overtheWesternSahararegion.ItspowerandwaterutilityONEEsignedinJulyadealwithShelltosecure0.5bcmaof

regasifiedLNGfor12years.Thecountry’splanstodevelop

morerenewablesaremovingaheadslowly,suggestinggaswillplayakeyroleinitsintendedphase-outofcoal.

?Israelisworkingtoexpandnaturalgasproductionatthe

offshoreTamarfieldandincreaseexporttoEgypt.Those

exportsaresettoriseby38.7bcmover11years,while

Tamar’soutputisexpectedtogrow60%or6bcmannually

from2026.Egyptneedstheextragas,facedwithgrowing

demandfromitspopulationof105mnanda9%year-on-year

declineinproductioninJanuary-Maythisyear,or12%versusthesameperiodof2021.Thecountryhasgrappledwith

powershortagesasheatwaveshavedrivenupdemandforcooling.

EastAfrica:EniiseyeingasecondFLNG

projectoffMozambique,andKenyaissettobuildagaspipetoTanzania.

Africa’snaturalgasproductionand

consumption(bcm)

300

200

100

50

0

20212022

PRODUCTIONCONSUMPTION

Africa’snaturalgastrade(bcm)

2022

2021

LNGEXPORTSLNGIMPORTSFORTOTAL

MIDDLEEAST&AFRICA

?EniislookingtobuildasecondfloatingLNG(FLNG)plantin

MozambiquetotaptheabundantgasreservesintheRovumabasin.TheItalianmajor,workingwithExxonMobil,Galp

Energia,ChinaNationalPetroleumCorp.andKoreaGas,

operatestheCoralSulFLNGprojectoffMozambiquethatcameonlinein2022.ItbelievesasecondFLNGunitcould

replicateCoralSul’ssuccess.CoralSulFLNGisexpected

toproduce450bcmofgasintotal,liquefying3.4MTPAforexport.

?Kenyahascompletedadealtorevampthedefunctstate-

ownedKenyaPetroleumRefineriesLtd(KPRL),pavingthewayforagaspipelinetobebuiltfromMombasatoDaresSalaam,inTanzania.InMay2021,TanzanianPresidentSamiaHassan

REGIONALUPDATE

OCTOBER2023

11

GLOBALVOICEOFGAS

MoroccoismeanwhileturningtoLNGimportsafterlosingitspipelinedeliveriesfromneighbouringAlgeria,whichsoughttousethosedeliveriesasleverageinthedisputeovertheWesternSahararegion.

andherthen-KenyancounterpartUhuruKenyattasignedoffonapreliminaryagreementcoveringthetransportofgasfromTanzaniaforuseinpowergeneration,cooking,andheating.

WestAfrica:MorecountriesaresigninguptotheNigeria-Moroccogaspipelineproject,Enihasstartedproductionat

theBaleinefieldofftheIvoryCoastandNigeria’sNNPChassignedapreliminaryagreementontheUTMFLNGproject.

?FourmoreAfricancountries–C?ted’Ivoire,Liberia,Guinea,andBenin–havesignedmemorandaof

understandingwithMoroccoandNigeriatotakepart

intheflagshipNigeria-Moroccogaspipelineproject,

bringingthetotalnumberofcountriesparticipating

to12.BesidesMoroccoandNigeria,theothersare

Mauritania,Senegal,Gambia,Guinea-Bissau,Sierra

LeoneandGhana.Thepipelineisexpectedtoincreaseaccesstoenergy,improvelivingconditionsandsupporttheintegrationofregionaleconomies.Itisdesignedto

transportnearly3bcfdofgasperdayalongtheWest

AfricancoasttoMoroccoandEurope,runningover

7,000km,benefittingover400mnpeopleinWestAfrica.?Enihasbegunoilandgasproductionatthegiant

BaleinefieldindeepwatersoffshoreIvoryCoast.The

firstphaseofdevelopmentinvolvesusingaproductionstorageandoffloadingvesselcapableofhandlingupto15,000barrelsperdayofoiland24mcfdofgas.Thesecondphase,ontracktostartbytheendof2024,willincreaseoutputto50,000bpofoiland70mcfdofgas,followedbyathirdthatwillraiseitto150,000bpdand200mcfdrespectively.

?NigerianNationalPetroleumCorp.(NNPC)hassignedaheadofagreementwithUTMOffshoreLtd.forthe

UTMFLNGproject.TheplannedFLNGvesselwill

produce176mcfdofgasfromtheoffshoreYohoField.NNPCwillhavea20%equitystakeintheproject.TheFLNG,duetobecompletedby2026,willcomprise

aturretmooringsystem,gaspretreatmentmodules,LNGproductionmodules,livingquarters,andpower

generationandutilitiesalongsidestorageandoffloading.

REGIONALUPDATE

OCTOBER2023

12GLOBALVOICEOFGAS

NorthAsia&

Australasia

SATOSHIYOSHIDA

SeniorAdviser,JapanGasAssociation,andIGURegionalCoordinator.

HighLNGdemandinEuropecontinuestoimpactAsia.

?Asia’sLNGsuppliesarelargelyinfluencedbythedemand

fornaturalgasinEurope.Inrecentyears,AsiancountrieshavebeenunabletoprocureLNGatalowerpriceduetoEurope’ssharplyrisingdemandtoreplacenaturalgaslostfromRussiaanddelaysinnewLNGprojects.

?InsomepartsofAsia,highLNGpriceshaveledtoaclearreturntocoal,whichisaffordable,abundantand

available,andthishasbecomeamajorobstacletoachievingdecarbonisationthroughashiftfromcoal-firedtogas-fired

powergeneration.

?Nevertheless,newmarketsinAsiaareopeningthemselvesuptoLNG,andpioneeringcompaniesinJapanandKorea

arecontributingtheiraccumulatedknowledge,experience

andexpertisetosupportthediffusionofnaturalgasandLNGintheregion–fuelsthatareindispensabletounderpinthe

introductionofmorerenewableenergy.

Despitedeclineinthelastyear,LNGpricesremainhighversushistoricallevels,and

volatile.

?JKMLNGpricesremainhighlydependentonTTFprices.Withtheincreasingbuild-upofinventoriesinEuropesince

earlyonintheyear,bothJKMandTTFaremuchlower

thantheywerelastyear,butstillhighcomparedwithhistoricnorms.JKMisdoublethelevelofpreviousyears

?WhenthepossiblestrikesatthreeAustralianLNGplantswerereportedonAugust9,theJKMpricetemporarily

exceeded$12permmBtu,butitiscurrentlyinthe$11permmBturange.ThisisbecauseglobalLNGsupplycapacityisstrainedbecauseofalackofinvestmentandRussiancutsin

gasflowtoEurope.

?Ontheotherhand,JKMhasreturnedtoitstypicalpremiumtoTTF–currentlycloseto$2permmBtu,duetoEurope’s

abundanceofgasinundergroundstorage.

WhileChineseLNGdemandremains

sluggish,thecountryisexpandingitsimportportfoliotocoverlong-termdemand.

?China’sdomesticgasproductioninJanuary-Maywas97.3bcm(71.5MT),up5.3%yearonyear,whileLNGimports

cameto27.5MT,up4.0%yearonyear.Pipelinegasimportstotaled18.8MT,up2.3%yearonyear.LNGimportsin2023areexpectedtoreach69MT,whichis5MTmorethanin

2022,thankstonewlong-termsupplycontractskickingin.

?JKMmaybedeclining,butpipelinegasisstillcheaperanddomesticgasandcoalproductionisrisingstrongly.China’s

economyisstillrecoveringfromtheimpactofCOVID-19anddoesnotneedtopurchaselargevolumesofspotLNGatthistime.

?Ontheotherhand,Chinaissteadilyexpandingitslong-termLNGimportportfoliotocoverfuturedemand.InNovember

2022,Sinopecsigneda4MTPA,27-yearsalesandpurchaseagreement(SPA)withQatar,andinApril2023,itacquireda1.25%stakeintheNorthFieldEast(NFE)expansionproject.InJune,CNPCalsosignedaSPAunderthesameregimeandacquiredaninterest.

?InMay,PetroChinaandBPeachacquired2bcmaof

receivingcapacityfor20yearsfromOctober2026,followingtheexpansionoftheGateLNGreceivingterminalinthe

Netherlands.ChinaisgainingafirmfootholdintheglobalLNGtrade.

?AlsoinMay,theHongKongLNGprojectwaslaunched.ThegaswillbedeliveredfromanFSRUmooredatanoffshore

berthtotwoonshorepowerplants.CLPPower,whichis

REGIONALUPDATE

leadingtheproject,hasalreadysignedalong-termLNGpurchaseagreementwithShellfor1.2MTPAoflNGfor10yearsstartingin2020,withcommercialoperations

scheduledtostartinJuly.

?IncludingtheTangshanLNGreceivingterminal,whichstartedoperationsattheendofJune,thenumberof

LNGreceivingterminalsinChinahasreached25,withareceivingcapacityof120MTPA.However,importshavenotincreasedasexpectedinrecentyearsandcapacityutilisationisexpectedtoremainlow.

JapaneseLNGimportsarefallingfast,andtherestartofmorenuclearplantswillfurtherdampendemand.

SouthKoreaareexpectedtodeclineinthefuturedueto

thegaspricehikeinMay.

?LNGimportsareforecasttodeclineslightlyin2023,

by1MT,duetothecommissioningofthe1.4-GWShin

Hanul-1and1.4-GWShinHanul-2nuclearreactorsin

December2022andSeptember2023respectively.

Australiangovernmentrollsoutkey

policies,includingtargetedemissions

reductionsatgasfacilities.

?Underthenewgovernment,importantpolicieshave

beenannounced,includingawholesalegaspricecap

andgassecurityguidelines.

?LNGdemandwassluggishinthefirsthalfof2023due

tocontinuedhighinventoriesfromthesummerof2022,

?InJuly2023,theAustralianSafeguardMechanismwill

mildwea