“the Role Of Natural Gas In A Transitioning Energy Landscape” – As energy security is high on ASEAN’s energy agenda, ASEAN governments are seriously seeking to explore energy sources that are reliable and sustainable as the main principles of energy cooperation in the region. These principles have been conceptualized under the ASEAN Action Plan for Energy Cooperation (APAEC) 2016-2025. According to this concept, as a low-carbon energy carrier, natural gas has the potential to increase its share in ASEAN’s energy mix. The ASEAN Center for Energy (ACE) database shows that the share of natural gas in ASEAN’s energy mix between 2005 and 2016 has been significant (around 20%).
The region is potentially rich in gas deposits that position it as a net exporter of natural gas for many years. Two-thirds of ASEAN’s gas reserves are located in Indonesia and Malaysia, with a total annual gas production of more than 200 billion cubic meters in 2016. The abundance of gas, therefore, has led to Indonesia and Malaysia to be among the largest exporters of gas in the world. . In addition, Brunei Darussalam and Myanmar are also natural gas producers in ASEAN. However, the production level is relatively small with almost 30 billion cubic meters in 2016, of which about 90% of the products were exported. While the level of gas production in these four ASEAN Member States (AMS) determines export potential, this is not the case for Thailand. This AMS has become a net importer and has expanded its regasification facility to anticipate the decrease in the supply of gas imported through pipelines. In the case of Singapore, it appears that this country also made some efforts to expand its regasification terminal capacity and become a commercial liquefied natural gas (LNG) hub in the region to address supply issues and demand
“the Role Of Natural Gas In A Transitioning Energy Landscape”
Natural gas will continue to be an important pillar of energy supply in the ASEAN region. In 2016, natural gas accounted for 24% of ASEAN’s energy mix or nearly 150 MTOE, and attributable as the second largest source of energy after oil. In addition, natural gas has overtaken coal in ASEAN’s energy mix in 2005-2016. Natural gas also plays an increasingly important role in industrial processes and the power sector. In industry, natural gas is not only consumed as a fuel to generate electricity but also as a raw material for various products such as fertilizers and pharmaceuticals. Natural gas as a feedstock is also commonly used for the production of methanol, which has many industrial applications. In the ASEAN power sector, natural gas has the highest installed capacity with more than a third of the total installed capacity coming from natural gas. Therefore, the importance of natural gas in ASEAN’s energy mix is evident.
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Considering ASEAN’s global energy needs over the next 20 years, it is clear that coal and natural gas will play a key role in ASEAN’s energy mix. There are three common reasons for this, the so-called “three likes”: abundance, affordability and availability. This, however, shows the potential to help AMS achieve energy security and environmental goals. Therefore, it is important for AMS to consider the benefits of natural gas in developing its long-term energy strategy.
Rising demand and falling natural gas outputs have raised security concerns for AMS. The key conclusions of the
(ACE, 2017) projected that ASEAN will no longer be a net exporter of gas by 2025. There are two main reasons for this. First, in terms of production, ASEAN has seen limited discoveries after the Natuna block, which is one of the largest resources in the region. It is clear that natural gas production in ASEAN is declining by about 1% per year from the level of 2010. Second, natural gas consumption continues to increase in both the end-user and the energy There is an intention in ASEAN to switch fuel consumption from oil to natural gas and renewable energy. The high demand for natural gas from the electricity sector in the future reflects AMS’s ambitions in the electrification program.
Rightly so, it is important that the AMS realizes the full potential of its gas resources. A major challenge is that gas reserves tend to be located far from economic activities. Some natural gas resources are scattered especially in archipelagic countries such as Indonesia and the Philippines. Anticipating this challenge, LNG imports, including small-scale LNG supplies, could also be part of the alternative solution. In Indonesia, for example, a natural gas reserve is located near the island of Papua in eastern Indonesia, while demand is concentrated on the island of Java in western Indonesia. The obvious choice to build a small-scale LNG terminal is then crucial to guarantee gas supply. In addition, the development of gas infrastructure such as pipelines, floating storage regasification unit (FSRU) and small-scale LNG would be very useful for Member States once the region becomes a net gas importer. These facilities are important for gas trade within and with other countries outside the region.
The Role Of Natural Gas In Energy Transition
In addition to increasing gas supply, the AMS continues to strengthen regional cooperation in gas supply connectivity. In fact, ASEAN has initiated an interconnection pipeline known as the Trans-ASEAN Gas Pipeline (TAGP). This commitment has been included in the APAEC document that is planned for the 2016-2025 academic year (ACE, 2015). TAGP aims to improve connectivity for energy security and accessibility through pipelines and regasification terminals. More than 3,500 kilometers of existing pipelines have currently connected six AMS with around 22 million tonnes per annum (MTPA) of six LNG regasification terminals in the region. The TAGP project also provides opportunities for private sector involvement in terms of investment, including financing and technology transfer. In addition, the gas pipeline network offers important advantages, both in terms of security, flexibility and quality of energy supply.
The opinions, views and information expressed in this article have been compiled from sources believed to be reliable for the purpose of information and exchange only, and are solely those of the writer/s. They do not necessarily reflect the views and opinions of the ASEAN Energy Center (ACE) and/or ASEAN Member States. Any use of the content of this article must be made with permission from ACE. Kudos to @Shell and CPC Corporation Taiwan for improving accuracy and transparency in CO2 and methane reporting and verification. #LNG
🗣️”The share of #LNG in the global consumption of natural gas has increased from 6% in 2000 to 13% today. It now includes 19 exporting countries and 45 import markets.” @vincedemoury (@)
LNG is the cleanest burning hydrocarbon and one of the few energy sources that can be used in all energy sectors
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LNG and natural gas are playing an important role in facilitating the energy transition and providing a rapid switch from dirtier energy sources such as coal or heavy fuels to a cleaner alternative.
In the industrial sector, LNG and natural gas provide a clean solution to those industrial sectors that need a high fuel in their production process and that are the most difficult to electrify.
In developing economies, it will replace traditional biomass heating and cooking, helping to reduce the health impacts of localized emissions from other fuels.
In the transport sector, LNG has also shown a significant reduction in emissions (both greenhouse and particulate) compared to traditional fuels, and is helping to diversify the fuel mix and reduce air pollution. air as a fuel for heavy road transport and shipping.
The Role Of Natural Gas As A Transition Fuel In The Present Context
These advantages suggest a central role for natural gas in the energy transition. In its new policy scenario, the IEA expects natural gas use could increase by 45% over the next 25 years. Developing countries are expected to account for more than three-quarters of this growth.
Natural gas and LNG are an abundant, secure and flexible source of energy and high levels of anticipated demand can easily be met with known levels of recoverable natural gas resources. As technology advances, so does our ability to unlock the world’s natural gas resources. Today, proven global gas resources stand at 769 trillion cubic meters, enough to meet global gas demand for 219 years at current demand levels.
Ample LNG supply on the horizon: Many potential LNG projects are currently being proposed around the world, compared to current consumption of 354.7 million tonnes.
There has been rapid growth in the number of LNG supplying countries, nearly doubling between the turn of the century and 2019. This has significantly increased the flexibility and security of gas supply options for importing countries.
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By 2020, LNG provided affordable energy access to 43 markets with a combined population of more than 5 billion people.
In a continuously evolving market, different small-scale solutions have also been developed, adapting to customer needs. These include: small liquefaction plants, small regasification plants, bunkering services, etc. Floating solutions often provide rapid access to LNG markets at a lower cost than traditional onshore facilities.
Natural gas plays a key role in the generation of energy, since the combustion of natural gas in combined gas plants has proven to be more efficient and cleaner than the burning of other fossil fuels, such as coal.
On a life-cycle basis, studies have concluded that LNG emits about half the greenhouse gas emissions of coal when burned to generate electricity.
Natural Gas Takes The Role As Backup Fuel
) when burned into an efficient new
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