Greg Watson’s Post

"Only When LNG Doesn't make sense: Key Issues in Vietnam's Energy Strategy" In a recent report by Solutions For Our Climate (SFOC), profound concerns have surfaced following an internal feasibility study of the Vietnam Hai Lang LNG project. The report accentuates the substantial involvement of South Korea in propelling the project forward, prompting inquiries into the congruence of corporate motives with overarching energy sustainability objectives. 7/7 perspective 1. High Electricity Prices: The Hai Lang LNG project aims to set electricity prices at 2,596.5 VND/kWh (US$108.8/MWh), which is approximately 70% higher than the average price of electricity generated at major coal plants in Vietnam. 2. Economic Burden: Vietnamese state utility Electricity of Vietnam (EVN) could spend up to US$1 billion per year on electricity generated from the Hai Lang gas plant, exacerbating its financial losses. 3. Heavy Investment: The South Korean and Vietnamese joint-owned Hai Lang LNG Project is valued at US$2.3 billion, with a significant portion of this investment at risk if the project is deemed economically unfeasible. 4. Renewable Energy Potential: Vietnam leads Southeast Asia in solar and wind power capacity, accounting for two-thirds of the region’s total renewable energy capacity. 5. Renewable Cost Advantage: Utility-scale solar in Vietnam is already cheaper than new coal and gas plants, highlighting the economic benefits of renewable energy investments. 6. Future Gas Plans: Vietnam plans to develop over 22 GW of new LNG power capacity by 2030, up from zero operational capacity currently, as part of its broader energy strategy. 7. Energy Mix Shift: By 2030, domestically produced gas and LNG will constitute approximately 24.8% of Vietnam's energy mix, a significant increase from 9 GW in 2020. #VietnamLNG #EnergyTransition #CorporateInfluence #RenewableEnergy #ClimateAction #Sustainability #FossilFuels

Since 2016, 29 GW of new gas power plant capacity newly operated across Southeast Asia (SEA). 139 GW of gas and liquefied natural gas is currently in the pipeline – a capacity that’s the 2nd biggest among Asian subregions, following East Asia. The surge in gas power comes with a boom in new proposed LNG import capacity. While it is largely shaping into an LNG import hub, SEA also hosts two of thee biggest global exporters of LNG. But Southeast Asia is also on the cusp of a renewable energy transition. Since 2016, SEA countries added more renewable energy capacity than gas, even as renewables received only about half as much financing as gas in the same period at USD 31.8 billion. At 328 GW, planned renewable energy capacity in the region also far eclipses that of gas. The potential for massive renewable energy deployment in the region – led by countries like Vietnam and the Philippines which also have the biggest plans for new gas capacity – has raised calls for an end to financing and policy decisions that embolden a gas detour in the region. International financing (from the U.S., UK, EU and Japan among others) is an important driver of Southeast Asia’s gas development plans. Different funding mechanisms (and their conditions) are making it difficult for Southeast Asia to transition away from fossil fuels. #energytransition #southestasia #naturalgas #lng #foreigninvestment #perverseincentives #vietnam #philippines #climatechange

It's encouraging to see the Philippines looking to collaborate with a range of partners - within Asia and beyond - as it progresses plans to expand the role of natural gas in its energy system. ANGEA visited the Philippines last week and it was clear from our meetings with a wide range of stakeholders that switching out coal for gas is central to aspirations to meet rising energy demand while reducing emissions. As this article notes, power demand in the Philippines is projected to triple to 2050 compared to 2022 levels. More than 60 per cent of the country's electricity is currently generated from coal. It's essential that gas-exporting countries around the world continue to develop major projects that will meet the future energy needs of the Philippines and other emerging Asian nations. #naturalgas #lng #energytransition #energysecurity #decarbonisation #decarbonization

🌍⚡ APAC Energy Update - 3 June 2024 The Asia-Pacific region continues making impressive progress in the energy sector, with a strong emphasis on renewable energy, decarbonization, and regional collaboration. Here are the top five updates: 1️⃣ ASEAN Power Grid Vision: Cambodia, Laos, and Singapore have joined forces to create a working group. Their goal? To streamline cross-border electricity trade and propel the ASEAN Power Grid vision forward. They’re working on a framework for cross-border electricity trading projects, simplifying regulatory approvals and licenses, and exploring avenues for commercial arrangements and infrastructure development. 2️⃣ Construction Support for Offshore Wind Projects in Japan: OEG Renewables and Sojitz Machinery Corp have inked an MoU to offer pre-construction, operations and maintenance, and vessel services for offshore wind projects in Japan. This partnership aligns with Japan’s ambition to install 10 GW of offshore wind capacity by 2030 and up to 35-40 GW by 2040. 3️⃣ Low-Carbon Ammonia and LNG Supply: ADNOC has entered into agreements with Korean partners during the UAE President’s state visit to the Republic of Korea. These agreements aim to develop low-carbon ammonia value chains and LNG supply. 4️⃣ Regulatory Framework for LNG Imports in Vietnam: Experts in Vietnam are calling on the government to establish a legal framework for LNG imports. They’ve expressed concerns about the absence of regulations for LNG imports-exports, gasified LNG supplied to power plants, and potential hurdles for LNG projects. They stress the importance of a comprehensive legal foundation to attract international and private investors. 5️⃣ Energy Storage Plant in Japan: ORIX Corporation has unveiled plans to build the Maibara-Koto energy storage plant in Japan. With a rated output of 134MW and a capacity of 548 megawatt hours, this project is set to be one of Japan’s largest energy storage facilities. Read more here: 1. https://lnkd.in/gUfcFig5 2. https://lnkd.in/gtFupDmr 3. https://lnkd.in/gsVuhkDg 4. https://lnkd.in/g3Uj2K3P 5. https://lnkd.in/gqZpuFb9 #RenewableEnergy #EnergyTransition #CleanEnergy #ASEAN #LNG

Ahead of the 24th World LNG Summit & Awards, we have invited two experts from #China's LNG industry, Xi (Lucy) Liu, General Manager of Dongguan Daosen Natural Gas (#东莞能源) and Miaoru Huang, Director of Asia Pacific Gas and LNG Research at Wood Mackenzie to talk with Energy Connects on some crucial questions regarding the World’s largest LNG importer’s natural gas market development: 🔹How will natural gas fit into China's energy transition plan and co-exist with renewables? Where will the gas demand growth come from? 🔹What are the considerations for building a long-term gas supply portfolio, from a Chinese buyer's perspective? #Pipeline vs. #LNG, spot LNG vs. long-term contract. 🔹How will an emerging buyer navigate near-term market uncertainty? As an active LNG buyer and a city gas distributor in southern China, Dongguan Energy has received five LNG cargos so far this year from the spot market, Ms Xi Liu offers a closer look at #Guangdong province, a trailblazer in China’s energy transformation. She highlights that the province has always been ambitious in integrating renewable sources, and natural gas complements these efforts as a bridge fuel that fills the gaps when renewables fall short. Miaoru explores the evolving dynamics of China’s gas markets. She elaborates on how pipeline imports are playing a pivotal role in stabilising energy supply during the nation’s renewable energy transition. We are pleased to work with Wood Mackenzie as a Knowledge Partner at the upcoming World LNG Summit & Awards, 9-12 December in Berlin. We also look forward to welcoming the Dongguan Energy delegation at the event in #Berlin, led by Dongguan Energy chairman Mr Chen Zhongxin and Xi Liu. In addition to the existing volume in its long-term LNG supplies, Dongguan Energy actively seeks opportunities to work with suppliers in the spot market. Please contact me if you would like to meet the Dongguan Energy and Dongguan Daosen team in Berlin. For more information: www.worldlngsummit.com #WorldLNGSummit #LNGdemand #spotlng #energysecuirity #energytransition

The transition to liquefied natural gas (LNG) in Southeast Asian countries and the anticipated rise in demand for this fuel are prompting Japanese companies to expand their LNG operations in the region, particularly as the domestic market's demand diminishes. Natural gas is emerging as a crucial resource for the 10 member states of ASEAN, with countries like Vietnam and the Philippines initiating LNG imports in 2023 to support their gas-fired power plants. In Southeast Asia, there's a growing recognition that transitioning from coal-fired to gas-fired power generation, alongside renewable energy sources, offers a pragmatic solution for reducing carbon emissions. Michiaki Hirose, former president of Tokyo Gas and a prominent figure in Japan's energy sector, emphasised this perspective, underlining Japan's deepening involvement in the energy transition within the region. With Tokyo Gas and Philippine energy firm First Gen poised to jointly operate an LNG terminal in the Philippines pending government approval, there's a clear indication of the collaborative efforts underway to facilitate the transition to LNG as a transitional fuel. The welcome reception of Japanese investments in LNG by Philippine Secretary of Energy Raphael Lotilla signals a mutual commitment to advancing cleaner energy solutions in Southeast Asia. Read more about the article here: https://lnkd.in/g99YH-8e As Japan intensifies its focus on energy transition to ensure energy security, stay informed about the macro trends that will impact the industry and upcoming projects that’ll accelerate the pathway to net-zero at Japan Energy Summit & Exhibition, held from 3 - 5 June 2024, Tokyo Big Sight. Download Conference Brochure to find out more: https://lnkd.in/gRW8eYi9 Secure your delegate pass to engage in compelling keynote presentations, industry panel discussions and case studies in fostering cross-border collaborations toward a low-carbon economy: https://lnkd.in/eEMP_cK7  Brought to you by dmg events: Energy Portfolio - organiser of ADIPEC Exhibition and Conference, Gastech 2024, Global Energy Show Canada, and Future Energy Asia Exhibition & Summit. #JapanEnergySummit #Energy #LNG

Extending life and production of the Malampaya gas field will be essential to energy security in the Philippines as it navigates the energy transition. Malampaya is the country's only indigenous gas resource but it is a late-life field that has been depleting in recent years. Through a combination of domestic production and growing imports of LNG, the Philippines has identified gas as a fuel that will maintain reliability of power generation while moving away from high-emitting coal and increasing investment in renewable energy. ------------------------------------------------------ 💡 We are the voice of the gas industry in Asia 📖 Follow us for insights, data and policy on the pathway to a reliable, low-carbon energy future #naturalgas #energysecurity #energytransition #decarbonisation #decarbonization

The ability to access affordable affordable gas in sufficient volumes will be essential to the long-term success of energy transition in Vietnam. And that will require ongoing LNG production from major exporting countries like the US and Australia. As pointed out in this article (featuring commentary from Wood Mackenzie), Vietnam's gas demand could quadruple by 2050, as it seeks to reduce use of coal while maintaining energy security that supports strong economic growth. Vietnam started importing LNG last year and to date has purchased from the spot market. Signing long-term LNG deals will mark another step in the country's energy journey but one that will be more challenging without security of future supply. #lng #naturalgas #energytransition #energysecurity #decarbonisation

[ #View ] Asia-Oceania Power Plant News: March 4th - 31st, 2024 #Renewables Push:   Ø We can expect to see continued emphasis on renewable energy projects across the region. Countries like Vietnam and Australia are leading the charge, and Malaysia should strive to keep pace. Ø Watch for announcements on solar, wind, and potentially even geothermal projects. These will contribute to energy security and reduce reliance on fossil fuels. #Coal Plant Developments:   Ø The future of coal plants might be a point of discussion. While coal remains a significant source of power, stricter environmental regulations and a shift towards renewables could lead to closures or upgrades. Ø We might see news on cleaner coal technologies or plant conversions to utilize alternative fuels.   Natural #Gas Developments:   Ø Natural gas is likely to remain a crucial transition fuel for the region. News on new gas fields, pipeline projects, or LNG import deals could be significant. Ø It will be interesting to see how the conflict in Ukraine impacts global gas prices and influences import strategies in the region.     #Hydropower Updates : Hydropower is a well-established source in the region, particularly in Southeast Asia. Announcements on dam upgrades, capacity expansion, or potential impacts of droughts on hydropower generation are possibilities.   #Grid Modernization : Upgrading and expanding power grids are essential to integrate renewables effectively and ensure reliable power delivery. News on grid modernization projects or investments in smart grid technologies could be noteworthy.   #Policy and #Regulatory Changes : Keep an eye out for any policy or regulatory changes related to power generation, renewable energy targets, or carbon emission reduction goals. These can significantly impact the future of power plants in the region.     The Malaysian #Context:   Ø Malaysia needs to find a balance between ensuring energy security, affordability, and environmental sustainability. Ø We should look for news on how the government plans to achieve this balance, potentially involving a combination of renewable energy rollout, efficient use of natural gas, and potentially cleaner coal technologies in the short term.

New quality productive forces. China and its SOEs are pushing hard on the clean energy accelerator while growing the economy at around 5%. Particularly Germany’s coalition government should take note that achieving both clean energy transition and economic growth are possible. […] Chinese state oil and gas giant PetroChina plans to power all its drilling and refining activities with clean power by 2033 and to install massive renewable energy capacity this year. The Chinese firm is pledging to boost renewables operations just when international oil majors have started to walk back on some of their clean energy ambitions. Shell, for example, reaffirmed earlier this month its ambitions to be a net-zero energy business by 2050 but eased its carbon intensity target for 2030 as it has shifted away from clean power sales to retail customers. In contrast, PetroChina pledges to install as much as 30 gigawatts (GW) of renewable energy capacity this year, company executives said in an earnings press briefing on Wednesday, as carried by Bloomberg. PetroChina also plans to invest in hydrogen production, carbon capture, and geothermal energy, executives said. The state energy giant’s target now is that “all drilling and refining activities will be powered by clean energy” by 2033, chairman Dai Houliang said at the briefing. That’s much earlier than initial plans to have green energy power all operations by 2050. […] #china #petrochina #cleanenergy #netzero #economy #growth #petroleum #industry #oilmarkets #stateowned #shell #oilandgas