Gas in Transition - December 2024

COP29 has a deal

C elebrating 60 years of LNG Giving hydrogen a backbone in the Netherlands

Ireland’s path to a net-zero gas network

Advancing Local Communities and Global Energy Security

Message from the President

Dear readers,

Welcome to the first edition of our newly rebranded magazine, Gas in Transition! Its title is, as I am sure you appreciate, self-explanatory: as an industry, we are transitioning not just towards more sustainable, greener or more efficient forms and types of gas but, also, to a more collaborative and supportive environment for our industry to thrive in and build on its knowledge and expertise! We are, all of us are, energising a sustainable future!

Going forward, we shall also have thematic approaches for each of the magazine’s quarterly editions and I am delighted to share them with you all here:

• In March 2025, the magazine will focus on the themes of the 2025 World Gas Conference taking place in Beijing, China in May next year! The theme of the Conference is “Energising a Sustainable Future”, and will focus on clean energy, energy security, the integration of gas and renewable energy sources, the advancement and application of hydrogen, and the digital transformation. Please make sure that you secure your delegate passes!

• In June 2025, renewable and low-carbon gases will take centre stage and, as usual, if your company has made significant strides or contributions to the current body of knowledge, please do share them with us and our readers!

• In September 2025, CCS and CCUS will be the focus of the entire edition, and our fantastic editorial team will

welcome your contributions on these two fundamental topics for our industry’s progression to decarbonising the global energy system!

And last, but not least, our December 2025 edition will shine a spotlight on our industry’s innovation enablers, be they human, technical, technological, AI-led and so on. Innovation comes in many shapes and forms, and our ability to harness its advantages while constantly ensuring that any potential risks are adequately mitigated, is absolutely critical.

I am also very pleased to share with you that in October this year, IGU’s Council members present in Cairo elected our 2028-2031 President, Eng. Khaled AbuBakr, the Chairman of the Egyptian Gas Association and the first African President of the IGU! I hope many of you will join me in, once again, congratulating Mr AbuBakr on this momentous achievement.

I would also like to extend my sincerest gratitude to those Council, Regional Co-ordinators and Executive Committee members who joined us in Cairo for four days of exceptionally fruitful debates and discussions regarding matters ranging from our strategic positioning to our annual business plan and, especially, for an agenda packed with member panels and topical workshops.

Balancing the energy trilemma will require continued investments across the Gas value chain and all the world’s regions so that economies can cope with and adapt to a decline in natural supply and a growing global energy

demand dynamic.

Globally, more than $720 billion is to be spent on Gas pipelines under construction or planned, $190 billion is to be put into facilities to handle liquefied natural gas (LNG) imports and an additional $969.8 billion is allocated to facilities handling LNG exports.

Gas supply, storage and infrastructure investments must happen in parallel with accelerated investment in renewable and low carbon gas and CCUS technologies which must be ramped up by orders of magnitude to be consistent with the climate targets. Only then can we ensure that the priorities of energy security and energy transition do not undermine each other.

Enabling policy environments that will allow access to financing will be essential to reach the necessary scale of investment, including in carbon capture, utilisation and storage (CCUS), renewable gas, low-carbon gas and hydrogen, together with the infrastructure that enables them all.

While renewable power production can produce heat for low level industrial heat requirements, it lacks the efficiency to reach the higher levels required for various industrial processes, and this is why traditional fuels such as natural gas will still be required in the medium to long term.

By accelerating the transition to meet the world’s net-zero pledges, Gas supports the effective and reliable scaling of renewable energy, and it accelerates efficiency

gains. At the same time, the existing infrastructure will also enable cost-effective and more rapid deployment of low-carbon and renewable gases – critical for the deep and realistic decarbonisation of the global economy.

Given their resilience, Gas and its vast infrastructure support renewables deployment, serving as critical, flexible and dispatchable sources to tackle intermittency and enhance grid stability.

As this year ends and a new one will soon begin, I would like to extend my sincerest appreciation to you all for your contributions to the IGU, for pushing us all to do more and do better. And, on behalf of myself and of all the Chinese Presidency team, I would like to wish you, your families, and all your loved ones a prosperous, successful and productive 2025, and I very much look forward to welcoming you all to WGC2025 in Beijing next year!

YALAN LI President of the International Gas Union

Welcome to the 18th issue of Gas in Transition (formerly known as Global Voice of Gas), an International Gas Union (IGU) publication produced in collaboration with Natural Gas World (NGW).

In this issue, we begin the rebrand of Global Voice of Gas to Gas in Transition which will be dedicated to exploring and celebrating the role of not just natural gas, but all gases –hydrogen, renewable natural gas, biogas and others – in the ongoing global energy transition. Menalaos (Mel) Ydreos, IGU’s Secretary General, offers his view on how the gas industry’s evolution in just the last 10 years has led to changes to the IGU’s quarterly flagship publication to reflect that evolution.

As highlighted by IGU’s President, Madame Yalan Li in her President’s Message, Gas in Transition will reflect an industry that is transitioning towards more sustainable and efficient forms and types of gases while retaining the collaboration required for the industry to thrive and build on its knowledge and expertise.

Each quarterly edition of Gas in Transition will focus on specific themes: March 2025 will provide a preview of the upcoming World Gas Conference (WGC) in Beijing, the theme of which is “Energising a Sustainable Future”; June 2025 will feature renewable and low-carbon gases; September 2025 will focus on carbon capture, utilisation and storage, while the December 2025 issue will shine a spotlight on the innovation initiatives underway to secure the role of gas in the future energy mix.

This issue opens with a celebratory essay from LNG veteran Mehdy Touil, recognising not only the 60-year anniversary of the global LNG industry but, also, the importance of this commodity in bringing energy security and affordability to the world.

Highlighting the innovative delivery of energy by the global LNG sector, Malaysia’s PETRONAS is deploying innovation across its portfolio to make natural gas more sustainable and affordable. In this issue, Mr Abang Yusuf Abang Puteh, Senior Vice President of PETRONAS LNG Assets, discusses with Gas in Transition the initiatives underway at the state-owned firm.

From Colombia, Luz Stella Murgas, CEO of Naturgas, the Colombia gas industry group, writes of how strategic investments in that country’s growing gas sector can help alleviate energy poverty and hunger while still addressing climate change issues.

And Mr Maxime Miloyan, Vice President, Gas & LNG Markets at Technip Energies, tells us of Technip’s latest modular LNG solution and its current position in the global

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LNG market and near-term evolution.

Of critical concern to the future of the gas industry was the latest Conference of the Parties (COP), held in Baku over the last two weeks of November 2024. COP29 was always going to be about money, Charles Ellinas reports, and the final negotiations delivered, with enhanced funding commitments for developing nations and a global carbon market to facilitate the international trade of carbon credits.

Elsewhere, Mark McCrory, Director of Strategy and Advocacy at the IGU, writes of the wide chasm between the detailed work of the International Energy Agency and the attention-grabbing media reporting of that work.

And Ella Minty, the IGU’s Director of Communications, offers her own essay about the need for the 54 diverse economies that make up the continent of Africa to be allowed to pursue the development of their continent’s massive natural gas reserves, without interference from the Global North or environmental activists.

On the hydrogen front, Hydrogen Council’s CEO Ms Ivana Jemelkova writes about the focus and endurance that will be needed to complete the marathon required to build a hydrogen industry at scale.

Mr Hans Coenen, Executive Member at Gasunie, the Dutch Transmission System Operator (TSO), tells Joseph Murphy of his group’s work to develop a hydrogen backbone in the Netherlands, underpinned by repurposing parts of the Low country’s extensive natural gas distribution network.

Mr Rory Somers, Regulatory and Commercial Manager for Energy Security at Gas Networks Ireland describes how his country’s modern and extensive natural gas pipeline network can be fully repurposed within the next two decades to deliver biomethane and green hydrogen as Ireland seeks to develop a carbon neutral network.

And we learn of the work being done by Hungary’s TSO, Mol Group’s FGSZ Ltd, as it builds on a century of work securing natural gas supplies for Hungary and Central and Eastern Europe.

Finally, our regional updates section brings you up to speed on the latest natural gas developments in Latin America, North America and South and Southeast Asia.

We hope you enjoy this issue.

Dale Lunan Editor,

Gas in Transition

MENELAOS (MEL) YDREOS

Secretary General, International Gas Union

Introducing Gas in Transition

If your organisation would like to present its innovative technologies or processes, or profile its executives, to a select readership in excess of 40,000 global government and industry leaders please get in touch with the editorial team: dale.lunan@naturalgasworld.com or Ella.Minty@igu.org

Today’s Gas industry has evolved in just a decade to include all gases, and the International Gas Union’s flagship quarterly magazine is evolving to reflect those changes.

Gas is essential to human progress and global growth and, as IGU is a worldwide organisation whose purpose is to promote the political, technical and economic progress of the gas industry towards a sustainable global energy system, our magazine had to be rebranded to reflect that: gas is transitioning.

When we promote “Gas”, we fully embrace the potential of natural gas, low-carbon, decarbonised and renewable gases (including hydrogen, biomethane, synthetic gas and e-methane) to drive an even deeper decarbonisation of the global energy system.

As the world faces growing uncertainty, the Gas industry is essential to building more prosperous, secure, and sustainable societies for everyone, and we are doing so through energy diversification, innovation, and collaboration.

The future of energy is highly uncertain, and the estimates of future gas demand and its relative mix vary widely: they differ widely as economic growth in emerging economies is highly uncertain, and they vary widely even across deep decarbonisation scenarios. The pace of change is also highly uncertain, not least between different jurisdictions, from those fast-growing developing nations to the slower-growing advanced economies.

Gas and its associated technologies support renewable energy supply by overcoming intermittency and instability and, together, they can enable net-zero pathways, energy security and access.

It is no secret that natural gas is necessary for global energy security as an abundant, global, available, and clean

As the world faces growing uncertainty, the Gas industry is essential to building more prosperous, secure, and sustainable societies for everyone

energy resource. It is also indispensable for building up/ consolidating emerging and developed economies by providing access to modern energy, and for fuelling essential industries. The energy choices and technologies outside the OECD member states will decide the future global carbon budget. Balancing the energy trilemma will require continued investments across the gas value chain and across all the world’s regions, so that economies can cope with and adapt to a decline in natural supply and a growing global energy demand dynamics.

Celebrating 60 years of LNG

The celebration of LNG’s diamond jubilee is not just a celebration of its past, but a recognition of its importance in the ongoing global energy transition

MEHDY TOUIL

In October, the LNG industry celebrated a remarkable milestone: the 60th anniversary of the inception of the global LNG trade. This journey began with the historic voyage of the Methane Pioneer, which proved the feasibility of transporting natural gas in its liquid form across long distances. Building on this success, the purpose-designed LNG carrier Methane Princess loaded its first cargo at the $80-million CAMEL liquefaction plant in Arzew, Algeria (my home country and the city where my love story with LNG started) on September 27, 1964, and delivered it to Britain on October 12. Britain invested $70 million to develop Methane Princess and its sister ship Methane Progress, along with the Gas Council’s receiving facility at Canvey Island in Essex, creating a foundation for the future of LNG shipping.

The project was initially spearheaded by Conch International Methane, a British-American consortium that included Shell. Although Venezuela was initially considered for the liquefaction plant due to its rich gas reserves, Algeria ultimately became the preferred location due to its logistical and geographical advantages. The plant’s design and engineering were led by US company Pritchard, while French firm Technip, which has since become a global leader in LNG EPC services,

managed construction.

This anniversary commemorates 60 years of technical achievements and innovation, of forging durable commercial relationships that have influenced today’s global LNG trade flows, and of supplying clean energy to destinations far beyond the reach of traditional pipelines.

This pioneering spirit continues to shape the industry, underscoring the vital role LNG plays in advancing energy accessibility and reliability across the globe.

Like other sectors, the LNG industry has experienced its share of highs and lows beyond its inherent cyclical nature. I vividly remember the summer of 2009, when I was still a young field operator at Qatargas, as the company entered one of its most transformative phases.

The Fukushima crisis is also fresh in my memory, when LNG cargoes from across the globe were redirected to Japan to compensate for the nuclear energy shortfall, highlighting the potential of the short-term LNG market.

I’ll never forget the thrill of witnessing the first drop from Yamal LNG’s Train 1 and the remarkable efficiency that the Arctic ultra-low temperatures helped sustain. I recall the extended rotations during the pandemic and the historic lows when Henry Hub prices reached a 25year low in 2020. I was in the control room at Yamal when

Russia invaded Ukraine, and still there when JKM hit its all-time high a few months later.

Our industry is defined by volatility and uncertainty, and as a plant operator, I have learned to adapt swiftly to the nuanced impacts of distant geopolitical shifts and fluctuating supply-demand cycles on my daily duties, far away from the market spotlights and the glamour of conferences. Every change – be it a disruption, a price spike, or a global crisis – demands resilience, flexibility, and an unwavering focus on operational reliability. Keep the plant running smoothly and ensure the continuous flow of LNG to markets around the world. This mission was a privilege, knowing that each day’s efforts contributed to global energy security and the delivery of cleaner energy solutions.

I recognise the concerns shared by many of my peers as our industry once again faces criticism, some warranted and some not, from various institutions.

Yet we, more than anyone, know that natural gas will remain essential to global energy systems, providing crucial stability for intermittent renewable sources. No other energy source offers this level of flexibility while simultaneously enabling the growth of green electricity.

As an African, I cannot remain silent as financial support is withheld from the continent’s immense natural gas potential, delaying key projects due to insufficient investment. Billions worldwide still lack access to basic, affordable energy, and we cannot claim to pursue a just transition if they are left behind.

As such, we need to acknowledge LNG’s dual role in facilitating the energy transition by displacing higheremission fuels and supporting renewables. There is no shortage of examples where gas and LNG acted as a bridging fuel in emerging markets transitioning from coal or oil, aiding in the shift toward cleaner energy systems. The shipping sector, with the remarkable uptick in LNGfuelled newbuild orders, is a good example of that.

Once again, we need to re-evaluate the trading mechanisms that hinder LNG’s progression toward being a fully commoditised resource. The lack of transparency in pricing, and the influence of speculative trading all contribute to a volatile market environment that restricts LNG from functioning as a conventional commodity. Establishing parity with commodities like oil

will require structural adjustments, including improved pricing mechanisms and enhanced market transparency. Overcoming these obstacles is essential for stability, expanding access, and solidifying LNG’s role in the global energy mix.

We must also confront our own challenges, such as reducing methane emissions and improving process efficiency. The greenest energy is the energy we don’t use, and the laws of thermodynamics cannot be bent to suit our slogans.

While the results of the US presidential election will certainly revive the hopes of many project developers, supply will remain tight longer than expected, and as result the predicted emergence of new demand centers has failed to materialize.

Compounding this challenge is the lack of transparency concerning the influence – whether confirmed or perceived – of speculative trades on European gas prices. This opacity has had a cascading effect, influencing market dynamics in other regions and introducing further uncertainty.

The recent nosedive in spot LNG charter rates is another sign among others of a temporary oversupply of carrier capacity that overgrew LNG supply growth.

Despite these challenges, the LNG industry remains resilient and adaptive. Each milestone and obstacle in its 60-year journey has reinforced its importance in the global energy mix. As a cleaner alternative to coal and oil, LNG continues to be a vital component of the world’s energy transition. Its ability to deliver reliable energy to remote regions, stabilise markets during crises, and foster international cooperation highlights its value in a rapidly evolving global energy landscape.

The commemoration of this 60th anniversary is not just a celebration of the past; it is a reminder of the industry’s enduring legacy and the boundless possibilities that lie ahead. It is a tribute to the pioneers who first dared to transport natural gas as a liquid and to the countless individuals who have dedicated their careers to pushing the boundaries of what is possible. As the industry continues to evolve, the pioneering spirit that launched the global LNG trade will continue to drive innovation, resilience, and progress in the years to come.

and

has established himself as a leading influencer in the LNG industry, with nearly 90,000 followers on LinkedIn, where he shares industry insights, encourages discussions, and keeps his audience up to date with the latest trends and advancements in the LNG sector. He also provides technical insights to major global news agencies, including the Financial Times, Reuters, Bloomberg, and the Wall Street Journal.)

(Mehdy Touil, lead LNG specialist at Calypso Commodities and LNG Operations Specialist at Solaris-MCI, is an experienced LNG professional with more than two decades of expertise in the industry. With his wealth of knowledge

experience, he

RODNEY COX Director of Events, International Gas Union

WGC2025: Redefining the Role of Gas in the Sustainable Energy Transition

The 29th World Gas Conference (WGC2025) is a must-attend event for the global gas and energy industry.

This landmark gathering will unite industry leaders, policymakers, and experts from May 19-23, 2025 in Beijing, China, under the theme “Energising a Sustainable Future.”

Confirmed speakers include H.E. Saad Sherida Al-Kaabi, Minister of State for Energy Affairs of the State of Qatar and CEO Qatar Energy; Patrick Pouyanné, CEO TotalEnergies SE; Sarah Bairstow, CEO Mexico Pacific; Jack A. Fusco, President and CEO, Cheniere; Michael D. Lewis, CEO, Uniper; Fu Chengyu, Vice Chair, China International Council of Promotion of Multinational Corporations; Huang Weihe, Academician, Chinese Academy of Engineering; Li Yalan, President of the International Energy Union and more, each sharing transformative insights on today’s most pressing challenges and the pivotal role of natural gas in driving the energy transition.

Dive into eight powerful Plenary Sessions covering:

• Energising a Sustainable Future

• The Energy Policy Landscape

• The Global Energy Transition

• The Diversity of Gas Development Globally

• The New Financial Directions of the Energy Industry

• What is the Future of Global LNG?

• Digitalisation and Technological Innovation to Create a Sustainable Future

• The Role of Natural Gas in Future Energy Systems Engage with Current Debates on resilient energy systems, China’s gas development, low-carbon technology investments and more. Stay tuned for the upcoming Industry Insights and Technology and Innovation Sessions Centre, featuring even more groundbreaking discussions.

Experience a world-class exhibition featuring cuttingedge innovations and connect with thousands of industry professionals at the largest WGC exhibition.

IGRC 2027: May 24-27, Budapest, Hungary

Innovation: The Bridge to a Sustainable Gas Future

As the Chair of the National Organising Committee for IGRC 2027, I am really excited that the conference will take place in Budapest, Hungary, in May 2027. This event will bring together the brightest minds and leading innovators from the gas and energy sectors to explore how innovation can bridge the gap to a sustainable gas future. Set in a location where East meets West, IGRC 2027 promises to offer cutting-edge discussions, groundbreaking research, and unparalleled networking opportunities.

According to our plan the agenda will feature worldrenowned speakers and interactive workshops, providing invaluable insights into the future of energy. As part of our preparations, we’ve also launched a podcast series, and our official website is now live at igrc2027.com. I encourage you to follow these platforms closely for updates. IGRC 2027 will set a new standard for industry conferences, fostering collaboration and advancing knowledge in the energy sector. I look forward to welcoming you all to Budapest in 2027!

Annamaria Fehr, Chair, National Organising Committee

LNG2026 – The 21st International Conference & Exhibition on Liquefied Natural Gas

Doha, Qatar: February 2-5, 2026

We are excited to announce that LNG2026 will take place on February 2-5, 2026, in Qatar under the patronage of His Royal Highness Sheikh Tamim bin Hamad Al Thani, the Emir of the State of Qatar. Hosted by QatarEnergy, this leading global event offers an unrivalled platform for industry leaders and decision-makers to shape the future of the LNG industry.

LNG2026 will cover the entire LNG value chain, from production and transportation to market delivery. The conference and exhibition will provide opportunities for knowledge sharing, collaboration, and securing high-value deals, while offering insights into the latest industry trends, emerging technologies, and market developments to propel the LNG business forward.

Continuing the legacy of the LNG Conference Series, which is owned by the International Gas Union (IGU), GTI Energy, and the International Institute of Refrigeration (IIR), LNG2026 will bring together key stakeholders to drive innovation, forge valuable partnerships, and unlock new business opportunities. Join us in Qatar, driving the next wave of growth and innovation in the LNG industry.

For any enquiries, please contact the LNG2026 team at info@ lng2026.com.

HOST PARTNER

Latin America

CARLOS CORTES SIMON

Executive Chairman

at Asociacion De Empresas De Gas Natural and IGU Regional Coordinator

The 2023-2024 El Niño phenomenon, which concluded in June 2024, brought significant impacts across South America, with coastal regions like Peru, Ecuador, and southern Brazil experiencing unprecedented rainfall, while northern areas in Argentina, Colombia, and Brazil faced severe droughts. These environmental extremes underscore the need for reliable power sources, as Argentina, Brazil, Chile, and Colombia all heavily rely on hydroelectricity.

In response, these nations have expanded their energy security frameworks, with Latin America now home to 12 LNG import terminals: two in Chile, eight in Brazil, one in Colombia, and one in Argentina. This infrastructure, comprised of 10 floating storage regasification units (FSRUs) and two shorebased terminals in Chile, is crucial to sustaining energy supplies during periods of volatile weather.

Argentina

Milei’s administration is focused on correcting the macroeconomic imbalances that burden the country, and one of the actions is to eliminate subsidies for energy and natural gas consumption. At the same time, the government is beginning to take measures to deregulate the activity and moving from a paradigm based on domestic supply, to turning the country into an exporter of natural gas and LNG. Commercial production currently stands at 150 Mcm/day, of which 65 % is unconventional gas.

Production at Vaca Muerta. Vaca Muerta remains central to Argentina’s natural gas production, contributing 65% of the country’s total output, supported by a record US$10 billion in recent investments, further cementing its position as a major natural gas producer in the region. Argentina’s natural gas production stands at approximately 150 Mcm/day.

LNG Projects:

• Pan American Energy and Golar LNG Project: This floating LNG initiative is scheduled to commence operations in late 2027, targeting a production capacity of 2.45 MTPA. The project involves the deployment of a Floating Liquefied Natural Gas (FLNG) vessel, marking a significant step in Argentina’s efforts to monetise its vast natural gas resources.

• YPF (Argentina LNG): Initially a partnership with Malaysia’s Petronas, this venture is now seeking new investors, with Shell expressing significant interest. The project’s first phase aims for a production capacity of 9 MTPA, expected to commence between 2029 and 2030. Planned expansions could increase capacity to 30 MTPA by 2032, positioning Argentina as a key LNG exporter in the region. The estimated cost of the project is $55 billion.

These projects underscore Argentina’s strategic efforts to leverage its substantial natural gas reserves, particularly from the Vaca Muerta formation, to become a significant player in the global LNG market.

Infrastructure and Export Enhancements:

The expansion of the Gasoducto Perito Francisco Pascasio Moreno (formerly known as the “Presidente Néstor Kirchner pipeline”) has significantly increased Argentina’s natural gas transport capacity. This development supports the country’s efforts to reduce LNG imports while boosting its export capabilities. Argentina plans to increase natural gas exports to Chile to approximately 10 Mcm/day and is exploring the possibility of resuming exports to Brazil.

In November 2024, Argentina completed the Northern Pipeline Reversal project, enabling the supply of Vaca Muerta gas to seven northern provinces and reducing dependency on Bolivian imports. While the pipeline project faced delays, resulting in a temporary resumption of Bolivian gas imports, it represents a major step toward energy self-sufficiency and enhanced export capabilities.

Regulatory Reforms: In the second half of 2024, Argentina implemented significant reforms to its Hydrocarbons and Gas Laws, introducing firm export permits to provide greater certainty for natural gas exports. Additionally, the government established the Régimen de Incentivo para Grandes Inversiones (RIGI), an investment promotion regime offering tax incentives and legal stability clauses for large-scale projects with capital expenditures exceeding $200 million. These measures aim to attract international investment and strengthen Argentina’s natural gas sector.

Brazil

Gas for Jobs: Brazil’s government kicked off its Gas for Jobs programme last year, positioning natural gas as a driver for the country’s reindustrialisation by making the fuel more available and affordable, particularly in growing strategic sectors like steel, ceramics and petrochemicals. The programme aims to boost domestic supply, expand the socioeconomic returns from gas development, and integrate it more into the country’s energy transition strategy.

The Gas for Jobs initiative recently took a significant step forward with the signing of a decree by Brazil’s Minister of Mines and Energy. This decree, signed on August 26, 2024, focuses on advancing the natural gas sector to generate jobs, attract private investment, and increase the role of natural gas in Brazil’s energy mix.

Key Aspects of the Decree:

Market Liberalization: The decree further deregulates the natural gas market, building upon the 2021 Natural Gas Law. It facilitates the entry of new private companies into gas distribution, aiming to break the monopolies held by stateowned companies. This is expected to increase competition, reduce prices, and stimulate the gas market.

Incentives for Job Creation: One of the primary goals of this decree is to use natural gas as a tool for job creation. It encourages industries, particularly in energy-intensive sectors such as petrochemicals, steel, and manufacturing, to increase their use of natural gas as a cheaper and cleaner energy source. These industries are expected to benefit from incentives such as tax breaks and favourable regulatory conditions if they adopt natural gas in their processes.

Infrastructure Expansion: The decree emphasizes the need for expanding infrastructure, including pipelines, storage facilities, and distribution networks, to make natural gas more accessible across Brazil. The government will provide incentives for private sector investments in infrastructure projects, focusing on areas with industrial potential, but limited gas access.

Support for Pre-Salt Gas Production: A critical component of the decree is its support for increasing gas production from offshore pre-salt fields. The pre-salt area has enormous potential for natural gas extraction, and the decree seeks to encourage more investments in these areas by simplifying regulatory processes and offering financial incentives.

Environmental Considerations: While the focus remains on job creation and economic growth, the decree also

acknowledges the importance of environmental sustainability. It encourages the use of natural gas as a transitional fuel, helping industries move away from more polluting fossil fuels like coal and oil, while the country works toward long-term renewable energy solutions.

The decree was well received by industrial consumers, but provision regarding reducing gas reinjection to redirect part of these volumes to the market raised concerns from upstream producers who see it as an interference in their upstream development investments.

LNG Infrastructure: Brazil has eight LNG terminals and plans to expand its storage capacity to manage the intermittency of renewable energy sources and meet rising energy demand due to El Niño.

Colombia

CO2 reductions from the gas sector: The natural gas industry value chain in Colombia (represented by Naturgas and spanning exploration, production, transportation, distribution and commercialisation), consolidated its carbon footprint in 2022, which is considered the baseline year. It was found that the natural gas industry is responsible for 1% of the total greenhouse gas (GHG) emissions in the country, equivalent to 2.88 MT of CO2e.

While the emissions from this industry are small compared to those from other sectors (such as agriculture, forestry, and land use, which represent nearly 60% of the total emissions), the gas sector has been making significant efforts to gradually reduce its emissions and contribute to the country’s goals in this area. In fact, during 2023, the sector achieved an 8.7% reduction in GHG emissions, amounting to 2.63 MT of CO2e. This reduction is attributed to the implementation of energy efficiency measures, leak detection and repair, the reduction of flaring and venting, and the adoption of renewable energy sources. The industry expects to reduce its total emissions by at least 25% compared to the baseline year by 2030.

New Offshore Gas Discovery: In the last quarter, Colombia’s energy sector achieved a significant milestone with the confirmation of the Sirius gas field discovery, formerly known as Uchuva-2. Located offshore in the Caribbean Sea, Sirius is estimated to contain approximately 6 tcf of natural gas. This makes it the largest offshore gas discovery in Colombia since the 1990s.

The joint venture between Ecopetrol and Petrobras anticipates that Sirius could double the nation’s current gas reserves, which stood at 2.4 tcf at the end of 2023. Production

is projected to commence between 2029 and 2030, with an expected output of 470 Mcf/ day, significantly bolstering Colombia’s energy self-sufficiency.

Chile

As 2024 concludes, Chile advances its energy transition with strategic transmission projects, enhanced supply auctions, and a strengthened role for natural gas. These efforts balance short-term energy security with long-term decarbonisation goals, strengthening Chile’s leadership in clean energy innovation and commitment to a sustainable energy future.

Decarbonisation Plan: In late 2024, the Chilean government reaffirmed its commitment to decarbonisation by recognising transmission infrastructure as a strategic component of its energy transition plan. Likewise, it highlights the role of natural gas as a key transitional fuel during this ongoing process.

The plan outlines 45 measures to accelerate the closure of coal-fired power plants and ensure the grid’s capacity can handle increasing volumes of renewable electricity.

Natural gas plays a pivotal role in Chile’s energy transition as a critical transition fuel to support the growing integration of renewable energy. It ensures grid stability, particularly during peak demand periods, while acting as a reliable backup to address the intermittency of renewable sources.

Specifically, the measures included in the plan announced by the Ministry of Energy recognise the need to guarantee the security and strength of the electrical system, via natural gas, by two measures: the adaptation of the studies to evaluate the security of supply and natural gas, developed by the Chilean ISO; and the identification of the requirements for a resilient infrastructure linked to transitional fuels and other energy sources.

The recently announced policies aim to integrate natural gas more effectively into the energy system, by promoting operational flexibility and supporting the country’s broader transition to cleaner energy. This reinforces its role as a strategic resource, ensuring energy stability while renewable capacity expands.

Supply Auctions - New Dates and Focus: In November 2024, the National Energy Commission (CNE) published the final report on the 2023/01 electricity supply auction, outlining a roadmap to tender a total of 22,500 GWh over the next four years. This strategy aims to meet the projected annual demand growth of 2.8% until 2044, ensuring a stable and competitive energy supply for regulated customers. These auctions aim to promote renewable energy projects to meet growing demand

As Latin America navigates

the challenges and opportunities of a shifting energy landscape, natural gas continues to emerge as a cornerstone for energy

security

while supporting Chile’s decarbonization goals. The focus is on expanding renewable capacity and ensuring the reliability of the energy system, particularly in regions with transmission constraints.

Conclusion

As Latin America navigates the challenges and opportunities of a shifting energy landscape, natural gas continues to emerge as a cornerstone for energy security and economic development. Countries such as Argentina, Brazil, Colombia, and Chile are leveraging their unique resources to strengthen infrastructure, expand LNG capabilities, and implement forward-thinking regulatory reforms. These efforts not only enhance domestic energy reliability but also position the region as a competitive player in the global energy market.

While natural gas serves as a transitional fuel, supporting the integration of renewable energy and reducing dependency on more polluting sources, each nation faces distinct hurdles, from regulatory complexities to infrastructure constraints. By prioritizing regional collaboration, investment incentives, and technological innovation, Latin America is well-positioned to balance immediate energy demands with long-term decarbonisation goals.

The region’s commitment to leveraging natural gas as a bridge to a cleaner, more sustainable energy future demonstrates its readiness to adapt to global energy trends while addressing local economic and environmental priorities.

North America

TIM EGAN CEO, Canadian Gas Association

IGU Regional Coordinator

The US election results are the single biggest news event affecting the gas industry in North America in the final quarter of 2024. Donald Trump will return to the White House in January 2025 with his party holding majorities in the Senate and the House of Representatives. As such, the incoming Trump Administration is very well positioned to advance his strategy of “US energy dominance,” which on balance is extremely good for the natural gas industry across the continent.

Pro natural gas positioning

The incoming Trump team recognizes the importance of natural gas in maintaining energy reliability, supporting economic growth, and strengthening geopolitical advantage through exports. Natural gas is being framed as a fuel that balances the need to bolster the economy and the environmental performance of the sector. This pro gas narrative is expected to lead to policies that incentivise production, ease restrictions on infrastructure construction, and streamline regulatory processes.

Infrastructure growth and export

A major policy focus is expected to be on reducing regulatory barriers which could include approval processes for pipelines, LNG terminals, and storage facilities. The US is already a leading exporter of LNG, and the new administration appears to want to double down on this success. Increased exports to Europe and Asia could solidify the US’s position as a global energy leader. Additionally, President-elect Trump has emphasized the role energy will play in developing

artificial intelligence, which many see as being fueled by gasfired power. And while it is an “America first” strategy, the integration of the North American industry means this should bode well for the sector in all three countries, as more gas, and more gas infrastructure will continue to integrate the markets even more. Indeed, new LNG export terminals coming online in Mexico offer an additional export outlet for US produced gas.

A “North American” energy strategy

Despite Trump’s focus on increasing tariffs to bolster domestic manufacturing, the administration’s historical track record shows a deep understanding of North America’s interconnected energy systems and the merits in letting them function freely. This is reinforced by appointments to the Environmental Protection Agency (EPA) (former Congressman Lee Zeldin (New York)), the Interior Department (North Dakota Governor Doug Burgum), and particularly the Department of Energy (Chris Wright, successful energy entrepreneur and one of the moderators at the recent International Gas Research Conference (IGRC), all of whom have a strong understanding of the level of energy integration in North America. Nonetheless, Canadian and Mexican interests are nervously working to ensure what emerges in terms of energy policy from a to-be-formed “Council of National Energy” is a North American, not just American, energy focus.

Exit from the Paris Agreement

The new administration is expected to announce its withdrawal from the Paris Climate Agreement. This move, while controversial, and not a position that will be supported by current Mexican or Canadian governments, aligns with President Trump’s prioritisation of domestic energy interests over global climate commitments. While this has already ignited strong criticism, Republicans are likely to surprise by focusing on reducing global emissions with more gas for coal replacement thanks to US exports, and by an expected significant emphasis on nuclear power. It should be noted that Chris Wright has particular interest in and experience with both the natural gas and the nuclear sectors.

South & Southeast Asia

ABDUL AZIZ OTHMAN

President, Malaysian Gas Association and IGU Regional Coordinator

Natural gas will continue to be a pivotal energy source in Southeast and South Asia, providing a cleaner, more sustainable alternative to traditional fuels. As these regions continue to grapple with rapid economic growth, urbanisation and increasing energy demands, natural gas offers a viable solution to balance the energy trilemma, ensuring energy security, affordability and sustainability.

Both Southeast and South Asia are focused on reducing carbon emissions while enhancing energy access for growing populations. In this context, natural gas plays a crucial role in reducing emissions from energy generation and supporting the integration of renewable energy sources. However, countries in these regions face unique challenges, such as energy access, matured infrastructure and a reliance on high- emission coal for power generation.

The sustainability agenda across Southeast and South Asia is gaining momentum as these countries pursue ambitious energy transition goals. Governments are increasingly integrating natural gas as a reliable energy source into their

energy policies, to meet growing energy demands while reducing carbon emissions through numerous sustainability agendas and progressive implementation of various action plans.

ASEAN’s Sustainability Progress through Carbon Market Development

A critical component of ASEAN’s commitment to sustainability is the development of robust carbon markets that incentivise emission reductions and facilitate the region’s transition to a low-carbon economy. ASEAN countries are progressively evolving their carbon markets, with each country adopting distinct approaches in line with their unique economic and energy landscapes.

Malaysia

Market Type: Voluntary Carbon Market

Sustainability Target:

• Net Zero by 2050

• 45% emission reduction by 2030

Policy Framework Status: Implementing carbon tax in 2026 to incentivise carbon reductions in the iron, steel, energy industries and other sectors in the future.

Recent Updates: Carried out its first Malaysian Carbon Credit auction with carbon credits from the Kuamut Rainforest Conservation Project in Sabah at MYR50 per contract through Bursa Carbon Exchange (BCX).

Singapore

Market Type: Carbon Tax and Voluntary Carbon Market

Sustainability Target:

• Net Zero by 2050

• 30% methane emissions by 2030

Policy Framework Status: Singapore Carbon Tax (SCT) was introduced in 2019, the first carbon scheme in Southeast Asia. Applied to all industrial facilities with annual GHG emissions of 25,000 tonnes CO2e

Recent Updates: Expanding carbon tax to include more sectors and offsets

Indonesia

Market Type: Voluntary and Compliance Carbon Market

Sustainability Target:

• Net Zero by 2060

• Emission reduction of 31.89% unconditionally and 43.2% conditionally by 2030

Policy Framework Status: Regulation of carbon tax policy development ongoing

Recent Updates: Indonesia Carbon Exchange (IDXCarbon) launched in 2023 has facilitated carbon transactions, with a total value of around US$2.3 million and total trade volume of 608,000 tons of CO2 equivalent.

Thailand

Market Type: Voluntary Carbon Market Sustainability Target:

• Net Zero by 2050

• GHGreduction target 30 by 2030

Policy Framework Status: Carbon tax will be effective in 2025

Recent Updates: The enhanced carbon tax framework is

expected to be introduced as early as fiscal year 2025, aligning with the Cross-Border Adjustment Mechanism (CBAM) implementation, which is scheduled for 2026.

Vietnam

Market Type: Voluntary Carbon Market

Sustainability Target:

• Net Zero by 2050

• GHG reduction by 43.5% by 2030

Policy Framework Status: Policy frameworkin development

Recent Updates: Pilot project (2025-2027)

Philippines

Market Type: Carbon Pricing Framework Sustainability Target:

• Net Zero by 2050

• Reduce and avoid GHG emissions by 75% from 2020 to 2030

Policy Framework Status: Carbon market framework in 2025 Q2.

Recent Updates: Early stages of pilot carbon tax system

Laos

Market Type: Voluntary Carbon Market

Sustainability Target:

• Net Zero by 2050

• Unconditional emission reduction target of 60% by 2030.

Policy Framework Status: Carbon market framework in development.

Recent Updates: Open and Sustainable Carbon Market

In South Asia, energy accessibility and security remain top priorities as countries grapple with growing demand for energy amidst limited domestic resources.

Programme aims to establish a policy framework carbon market in Laos.

Cambodia Market Type: Voluntary & Regulated Carbon Market Sustainability Target:

• Net Zero by 2050

• Emission reduction target of 41.7% by 2030 Policy Framework Status: Development of carbon tax under consideration.

Recent Updates: In 2024, Cambodia formalised the Article 6 carbon market under the Paris Agreement. Generated around $10 million from the sale of carbon credits from forested areas potentially reduce by 3.9mn tonnes of CO2e.

Progress and Challenges in ASEAN’s Carbon Markets

Across ASEAN, carbon markets are taking shape, with each country at a different stage of implementation. These markets are expected to provide significant opportunities for reducing emissions, supporting clean energy investment and achieving national sustainability targets. Several common opportunities and challenges persist:

OPPORTUNITIES

Green Finance: The development of carbon markets is opening new avenues for Green Finance, attracting investments in sustainable projects and enabling countries to meet their climate targets. International funding mechanisms, such as the Asia Zero Emission Community (AZEC) and Just Energy Transition Partnership (JETP) initiatives, are playing a

crucial role in supporting green projects across the region.

Renewable Energy Integration: As natural gas serves as a transition fuel, it complements the region’s growing investments in renewable energy, supporting grid stability as intermittent renewable sources are integrated. Carbon markets can further enhance the economics of renewable energy projects by providing a price for carbon emissions.

CHALLENGES

Infrastructure Development: The development of necessary infrastructure, including emissions tracking systems, regulatory frameworks and trading platforms, remains a significant challenge in several ASEAN countries.

Economic Constraints: Many ASEAN countries, while committed to sustainability, must balance these goals with the need to support economic growth, job creation and energy access. As such, carbon pricing mechanisms need to be designed to minimise economic disruption and ensure that energy remains affordable for the nations.

South Asia: Balancing Energy Security Amid Supply Resource Challenges

In South Asia, energy accessibility and security remain top priorities as countries grapple with growing demand for energy amidst limited domestic resources. As natural gas is increasingly recognised as a cleaner alternative to coal and oil, countries in the region are focusing on expanding their gas infrastructure and securing LNG supplies to meet future demand.

Natural gas will increasingly play an essential role in the energy transition in Southeast and South Asia, balancing the need for energy security with the urgency of sustainability.

South Asia’s energy needs are rising rapidly due to population growth and industrialization, particularly in India, which accounts for the majority of the region’s energy consumption. Natural gas is expected to play a critical role in diversifying the region’s energy mix, but countries must address several key challenges:

• Supply Challenges: South Asia is heavily reliant on imports for natural gas, particularly LNG. Supply disruptions and price volatility are concerns, especially given the global competition for LNG supplies. To mitigate these risks, countries like India and Pakistan are investing in LNG infrastructure, including terminals and pipelines. Contract wise, both countries attempted to incorporate LNG contract terms that will provide price certainty and stability while at the same time include some form of supply flexibility such as volume, delivery schedule, delivery destination and others.

• Infrastructure Development: Expanding gas infrastructure is critical to enhancing energy security. In India, the development of the National Gas Grid is a key priority to improve access to natural gas across the country. Similarly,

Bangladesh and Pakistan are progressively expanding their regasification capacities to meet growing demand.

• Balancing Energy Affordability and Sustainability: While transitioning to natural gas is essential for reducing emissions, the rising cost of LNG poses affordability challenges, particularly in countries with limited financial resources. Governments need to find ways to mitigate these costs while continuing to invest in sustainable energy solutions.

Natural gas will increasingly play an essential role in the energy transition in Southeast and South Asia, balancing the need for energy security with the urgency of sustainability.

As ASEAN countries progress in the development of their carbon markets, the region is positioning itself as a leader in integrating market- based solutions to reduce emissions. However, the journey ahead will require overcoming key challenges related to policy consistency, execution of action plans, infrastructure development and international cooperation.

The Hydrogen Marathon: Advancing towards a Secure and Affordable Clean Energy Future

Focus and endurance will be key to finishing the race and building a hydrogen industry at scale.

IVANA

JEMELKOVA, CEO, HYDROGEN COUNCIL

At a recent government meeting in Brussels, an official likened deploying clean energy – and specifically hydrogen – to running a marathon. That is a fitting metaphor, describing the challenge, and the spirit, of bringing decarbonisation solutions to the market.

Our motivation to run is strong. Whether it’s driven by our desire to act on climate, foster our energy security, create new jobs, improve local air quality or simply do good business, the benefits of hydrogen are multifaceted and well recognised across society. However, increasingly complex macroeconomic and geopolitical realities are threatening to slow down our pace, perhaps even prevent us from advancing.

After a strong start, we are now a few kilometers into a high-stakes global event and realizing there are no shortcuts and running the entire 26.2 miles to scale up the solutions we need will require focus and endurance. The key question is: can we finish the race?

A strong start

When “Team Hydrogen” appeared at the start line of the energy transition marathon, there was both skepticism as well as cheering and, in that moment of heightened emotion, some forgot that marathons take time and hard work to complete.

To its credit, hydrogen started strong. The Hydrogen Council’s latest report, Hydrogen Insights 2024, provides clear evidence: this year, the industry reached a recordhigh $75bn of committed capital in 434 large-scale projects past final investment decision (FID) globally. This represents a seven-fold increase in just four years – a healthy pace, demonstrating a clear shift from announcements to project execution.

Thanks to in-depth research into successful projects, we know exactly which key factors are enabling FIDs. They include clear and effective policy incentives (e.g., 45Q tax credit for the capture, geological storage and

As national hydrogen strategies around the world translate into specific policies and regulations and the effort starts to benefit from real-life deployment experience, the track emerges more clearly, and hydrogen develops into a more experienced, confident runner.

utilisation of CO2 in the United States), demand-side incentives that drive offtake (e.g., contract-for-difference instruments driving demand for clean hydrogen and ammonia in power generation in Japan), and strong industrial policy driving costs down thanks to deployment at scale (e.g., in China).

As a result, regions such as North America have become home to over 90% of global low-carbon hydrogen capacity past FID. On the other hand, China leads on electrolyser capacity, with 65% of the global committed electrolyser volumes being deployed in that country alone.

No place for mid-race panic

As national hydrogen strategies around the world translate into specific policies and regulations and the effort starts to benefit from real-life deployment experience, the track emerges more clearly, and hydrogen develops into a more experienced, confident runner.

Natural attrition is an inevitable part of the process –phasing out less viable projects and prioritising those with the highest potential, a sign of the industry’s maturation. Similar trends have been observed in the early years of the wind and solar industries prior to reaching maturity with typical success rates of project funnels at about 10% to 20% from initial development to commissioning.

It is a common phenomenon when fast-growing climate

technologies enter a market and it is still being witnessed in other sectors today, such as the battery industry. In short, this is not a reason to quit the race.

Another important learning comes from a set of macroeconomic headwinds that hydrogen is facing alongside other clean energy technologies, ranging from inflation and interest rates to geopolitical turbulence and supply chain constraints. A key sector-specific challenge for the hydrogen industry is uncertainty associated with regulatory frameworks in some key markets, which impedes project bankability. Coupled with cost increases for renewable power and electrolysers, this has led to delays and cancellations of projects – in particular, renewable hydrogen projects. That reality requires us to be more resourceful and innovative but it’s no showstopper.

Most importantly, we need to be clear-eyed that despite undeniable progress, the most difficult kilometers are ahead of us, not behind. The reality is we need another significant increase in investment in hydrogen deployment if we want to deliver the many benefits of hydrogen in a net-zero scenario. Building on the sevenfold growth over the last four years, we need another eightfold jump by 2030. This is not impossible but would require all of us – industry, investors, governments, society – to choose to move even more quickly and decisively.

We need all hands on deck.

The energy transition race is a race against time and the challenges posed by our current system, and we are all running for the same team.

How to get to the finish line?

First, the global hydrogen industry and investors need effective regulation, demand side visibility, and bold industrial policy. We are asking for governments to establish clear, long-term regulatory frameworks to provide clarity and certainty, enabling demand-side visibility through binding targets, quotas, mandates and contracts-for-difference. These frameworks are crucial to provide the stability and predictability investors need to move forward with confidence.

The second item we need to urgently tackle is standardisation. We must put in place global standards to create an interoperable marketplace for hydrogen, starting with a broad recognition of the ISO/TS 19870 standard for determining the greenhouse gas emissions associated with hydrogen production. We must work together to create a robust common framework for how we define, measure, verify, certify – and therefore value –hydrogen’s climate attributes and how we design policies and regulations so that they are understandable and workable for hydrogen importers and exporters around the world.

Lastly, we need all hands on deck. The energy transition race is a race against time and the challenges posed by our current system, and we are all running for

Our knowledge services and stakeholder events provide a reliable platform for industry value chain, policy makers and regulators, academics, and consumers to source credible information to better understand the complexities of the global gas market. Natural Gas World also produces Gas in Transition – the official publication of the International Gas Union.

COP29 has a deal

COP29 was always going to be about money. Final negotiations delivered enhanced funding to developing nations and a global carbon market to trade international carbon credits.

CHARLES ELLINAS

Climate summits are notorious for running into overtime and into the weekend and COP29 was no exception. After acrimonious debates and a temporary walk-out from the summit by the small island nations, a deal was achieved early Sunday morning.

Dubbed as the finance COP, COP29 was always going to be about money. Its main priority was to agree a new target to replace the current US$100bn a year that developed countries provide to developing countries to reduce emissions and adapt to disasters which expires in 2025.

The key elements of the deal circulated on Sunday by the COP presidency are:

• It calls on all parties to work together to enable the scaling up of financing to developing countries for climate action from all public and private sources to at least $1.3 trillion per year by 2035.

• The new climate finance goal (NCQG) is at least $300bn per year by 2035 in which developed countries “will take the lead” to provide from a wide variety of sources, public and private.

• It invites developing countries to make additional contributions, including through South-South cooperation, on a voluntary basis.

The latter refers to China, rich Arab countries and others to make appropriate voluntary contributions. In fact, China has already provided billions of dollars in climate funds to developing countries. COP29 was expected to be difficult even before it started. Poorer countries are very disappointed with this offer because they consider it to be too low and because they expected most of the $1.3 trillion to be from public sources and to be offered with no strings attached. But leaving COP29 without a finance deal could have made the job at COP30 in Brazil next year that much harder. It is a step forward.

Delegations will now assess the outcome, but concerns are growing about the likely non-cooperative position of the US on climate once Donald Trump becomes President in January. With the US likely to be hamstrung by Trump, the EU and China are expected to take the lead to deliver the COP29 outcome.

Import infrastructure

In addition to the pipelines carrying hydrogen, Gasunie is also set to play an important role in developing import terminals and the storage facilities to support the system by balancing production and consumption.

World far off track for 1.5C target

Projected greenhouse gas emissions and future warming levels vary by actions taken

Target Pledges & Targets Current Policies

Emissions measured in gigatonnes of carbon dioxide equivalent. Warming relative to pre-industrial levels. “Pledges and Targets” includes net zero goals uinder discussion. Source: Climate Action Tracker, Nov 2024. Broad lines show possible range

“Large-scale underground hydrogen storage is hugely important for the security of supply of renewable energy,” Coenen says. “In the renewable energy system, you depend on an energy supply based on the production of electricity by wind and sun. The demand for energy does not match the supply. That is why you need a buffer. By storing hydrogen on a large scale, you create such a buffer.”

Storing hydrogen in salt caverns is the most promising solution, with the most suitable sites found in the northern Netherlands. These caverns are impermeable, preventing the escape of gas, while rock salt serves as a malleable but very stable material. They also offer significant storage capacity, are relatively economical and allow the fast injection and withdrawal of hydrogen.

Gasunie’s subsidiary EnergyStock already uses six salt caverns in this area to store natural gas. A demonstration project carried out by another Gasunie unit HyStock and research institute TNO at Zuidwending in 202122 concluded that these sites were also ideally suited for hydrogen, in terms of technical integrity, geological containment, stability and safety.

Gasunie is working on plans to create four new salt caverns for hydrogen storage at the Zuidwending site

with a combined capacity of 1 TWh. As the hydrogen market scales up, even more storage space will be needed, particularly given hydrogen’s low energy density compared with natural gas. Therefore, Gasunie is also involved in initiatives across the border in Lower Saxony, Germany, to store hydrogen in salt caverns.

On the import front, Gasunie has plans with Dutch infrastructure developer Vopak for a green ammonia terminal in Rotterdam, known as the ACE Terminal.

“With its dense nationwide network, storage and import facilities, hydrogen is ideally suited to make industry more sustainable and offers economic opportunities for the Netherlands as a key link in northwestern Europe,” Coenen says.

A deal on carbon markets

Another deal reached at COP29 was on international carbon standards. It opened the way to set up UNbacked carbon markets, as set out in Article 6 of the Paris Agreement, that promise to generate billions of dollars for climate action.

There are two main mechanisms for such trading to take place. Under Article 6.2 countries can set up carbon trading arrangements bilaterally, while Article 6.4 outlines

a system where trading would happen through a UNbacked carbon market, open also to business.

Under Article 6 of the Paris Agreement, countries can transfer carbon credits earned from reducing their GHG emissions to help other countries meet their climate goals. This should help generate and inject billions of dollars into the fight against climate change.

Who decides on climate?

The UNFCCC insists that it is the only legitimate body to decide on climate and agree on the climate finance goal. But in reality it is the G20 that can decide how that goal is reached.

The G20 is where major economies make the decisions, and the UN is where all countries have a say.

But now we have another dimension. The election of Donald Trump to the US presidency and his threat to pull the US out of the Paris Agreement threatens to derail the outcome of COP29. It could prove to be “a major blow to global climate action.”

It has already introduced a great deal of uncertainty at a time when it is urgent to arrive at decisions on lowering emissions and tackling global warming.

Some doubts were expressed about the COP process and the slow pace of progress, calling for reform, but there is no consensus on alternatives.

Tackling emissions

Little progress has been made in limiting emissions of greenhouse gases that are driving up temperatures. A recent UN report said global efforts to tackle climate change are seriously off track. New data shows that warming gases are accumulating in the atmosphere faster than at any time in human existence.

It is now more or less certain that 2024 will be the world’s warmest on record. Global average temperatures across the year are on track to end up more than 1.5°C above pre-industrial levels, which would make 2024 the first calendar year to breach this “symbolic mark.”

This latest record helped focus minds at COP29 on the urgent need for action to limit any further warming.

A recent UN report warned that, without change, “the world is on track to reach around 3°C warming by the end of the century”.

The UN says that limiting temperature rise to the 1.5°C target is still “technically possible”, but only with huge cuts to emissions over the next decade, something that is verging on the impossible.

Cutting emissions will now be placed under the Mitigation Work Programme, a non-binding process meant to enhance climate mitigation. This was approved at the COP29 closing plenary. But the final version fails to

mention last year’s landmark decision at COP28 to shift away from fossil fuels, which was included in earlier versions.

With Trump out is China coming in?

These are the initial indications. There are signs that China plans to take a more central role in the future. It is becoming more open about its plans and more participative in the COP process and may take a more active and cooperative role in future COPs.

Seizing the moment, and responding to the uncertainties surrounding the US, China made its presence felt, even though its president Xi Jinping did not attend. It sent nearly 1,000 delegates to Baku, where it showcased its determination to accelerate its energy transition, sending a message that it is ready to fill the “climate leadership vacuum.”

For the first time, Chinese officials said at COP29 that the country has provided developing countries with more than $24.5bn in funds for climate action since 2016. With demand for green technology likely to increase in developing countries as a result of the COP29 deal, China

Despite accusations that this was “one of the most chaotic COP meetings ever,” it ended with a deal.

– a major exporter of such technology – will have much to gain. Taking a more prominent role is in its interest and can only help.

China also took the responsibility of “pushing forward green and low-carbon development,” stating that it is “very willing to cooperate…to promote a low-carbon and sustainable future.” The country confirmed that it is “willing to take a more active role in global climate governance.”

Going forward

Despite accusations that this was “one of the most chaotic COP meetings ever,” it ended with a deal. It may not be quite what developing countries were hoping for, but it has, nevertheless, delivered substantially increased funds to tackle climate change. Viewed in the context of the

current global political and economic environment, it is not a bad deal.

Welcoming it, Simon Stiell, executive secretary of UN Climate Change, said “this new finance goal is an insurance policy for humanity, amid worsening climate impacts hitting every country. But like any insurance policy, it only works if premiums are paid in full, and on time. Promises must be kept, to protect billions of lives. It will keep the clean energy boom growing, helping all countries to share in its huge benefits: more jobs, stronger growth, cheaper and cleaner energy for all.”

The world needs to find ways to reduce emissions in a constructive way and in a consistent approach. But it also needs to achieve that while at the same time balancing the needs of people around the world to have secure and affordable energy.

Liu Zhenmin, China’s special envoy for climate change, speaks at COP29

Credit: Xinhua News Agency

Colombia’s Natural Gas: A Force to Tackle Energy Poverty, Climate Change, and Hunger

Colombia has emerged as a global example of how strategic investments in the natural gas industry can address some of humanity’s most pressing challenges: energy poverty, climate change, and hunger. By leveraging its abundant natural resources and innovative policies, Colombia is demonstrating the transformative power of natural gas in driving sustainable development.

Combating Energy Poverty

In Colombia, natural gas has been pivotal in improving lives. Over the past two decades, the country has achieved 70% household gas coverage – one of the highest rates in the Americas – surpassing nations such as the United States, Mexico, and Brazil.

This achievement has been transformative. By replacing traditional biomass fuels like firewood with natural gas, families, particularly women, have gained access to safer, cleaner cooking methods. This shift not only reduces indoor air pollution but also frees up time for education and income-generating activities, fostering economic and social empowerment.

Additionally, recent data from the National Planning

Department of Colombia highlights that natural gas service represents less than 1% of the total consumption cost for a low-income household, making it historically the most affordable public utility for Colombians. However, challenges persist. Approximately 1.5 million households in Colombia continue to cook with firewood, and almost 9.6 million individuals are living in energy poverty. Colombia’s example underscores how investments in natural gas infrastructure can reduce energy poverty, improve public health, and promote gender equality on a global scale.

Tackling Climate Change

Natural gas, as the cleanest fossil fuel, is playing a critical

Colombia is also pioneering renewable gas technologies, such as biomethane and hydrogen, which complements its natural gas infrastructure.

transitional role in Colombia’s decarbonisation efforts. The country has significantly reduced greenhouse gas emissions by expanding access to natural gas, which emits up to 50% less CO2 than coal and oil.

Remarkably, despite being a key energy provider, the natural gas industry is responsible for only 2.88 million tons of CO2(e) annually – just 1% of Colombia’s total emissions of 279 million tons CO2(e), according to the 2019 baseline. This highlights the industry’s commitment to sustainable practices and its minimal contribution to the country’s overall emissions profile.

Colombia is also pioneering renewable gas technologies, such as biomethane and hydrogen, which complements its natural gas infrastructure. Colombia is promoting international cooperation to share its expertise in renewable gases. By forming alliances with countries that have advanced technologies, Colombia is enabling regions with high potential but limited resources to develop their own renewable energy projects.

This approach – combining natural gas with renewable innovations – reinforces Colombia’s leadership in the global energy transition.

Energy access and food security

Natural gas plays a crucial role in boosting agricultural productivity through fertiliser production. Colombia’s fertiliser industry currently imports around 70% of urea, diammonium phosphate (DAP), and potassium chloride –inputs required to produce fertilisers and key derivatives of natural gas. These imports are essential to meet Colombia’s annual demand of approximately 1.5 million tons of fertilisers, with 530,000 tons of urea imported over the last five years, according to DIAN. Replacing these imports would require a dedicated plant consuming about 3% of Colombia’s daily natural gas demand. By connecting energy with agriculture, the country demonstrates how sustainable energy solutions can drive agricultural productivity and contribute to feeding the world.

A Model for Sustainable Development

Colombia’s journey offers valuable lessons for the global community. Strategic investments in the natural gas industry have not only propelled the nation toward

energy security but also addressed critical social and environmental challenges.

Natural gas and mobility

Natural gas vehicular (GNV) is crucial in Colombia’s sustainable mobility strategy. Beyond reducing emissions, GNV offers significant economic benefits. For instance, taxi drivers save an average of 50% by using GNV instead of gasoline. The adoption of GNV underscores Colombia’s commitment to energy-efficient transportation: more than 4,500 vehicles already run on GNV and in the last 20 years more than 650,000 vehicles had migrated to GNV.

Industrial Competitiveness

Natural gas remains the primary energy source for Colombian industries accounting for 32% of total energy consumption in the sector. It’s essential to produce food, glass, cement, and ceramics. In food production alone, natural gas contributes 30-40% of production costs, making it indispensable for maintaining competitiveness and preventing industrial decline.

Biogas and Biomethane

Colombia is embracing biogas and biomethane to reduce energy deprivation in remote areas and decarbonize the natural gas value chain. Key initiatives include:

• EPM’s biomethane plant (2023): Injecting biogas into the natural gas grid, benefiting 40,000 households, reducing 12,000 ton CO2 annually.

• Manizales biogas project (2026): Supported by France and Efigas, this landfill gas-to-energy initiative will supply 25,000 households and cut emissions by 15,000 ton CO2 annually.

A Balanced and Inclusive Energy Strategy

As the world faces energy poverty, climate change, and hunger, Colombia demonstrates the power of a diversified energy approach. By integrating natural gas with renewable innovations, the country is fueling its economy, sustaining industrial competitiveness, and fostering equitable development. I believe in the power of partnerships and IGU’s global presence is a key tool to increase natural gas and renewable gases as the fundamental source for global energy transformation.

LUZ STELLA MURGAS, CEO, NATURGAS

Driving Innovation to Transform LNG Accessibility and Sustainability

Malaysia’s

PETRONAS is deploying innovation across its portfolio to make its natural gas more sustainable and affordable, Abang

Yusuf Abang Puteh, Senior Vice President of

PETRONAS

LNG Assets, tells Gas in Transition.

Can you pinpoint some specific examples of innovations – whether technological or otherwise – that PETRONAS has implemented to make gas more affordable and more sustainable? How has PETRONAS developed and deployed these innovations at its LNG and other projects? Walk us through the economic/ commercial/environmental benefits of these solutions.

At PETRONAS, we believe in inclusive progress, and this drives our continuous innovation to make LNG more accessible and to produce LNG in a more sustainable manner.

To this end, we embrace technology and innovation throughout our LNG value chain to increase sustainability across our operations. From a technological perspective, our innovation began with pioneering solutions like our floating LNG (FLNG) facilities, made to not only unlock remote gas reserves, but also introduce a more costeffective alternative to conventional solutions.

In terms of making gas more accessible, we’ve broadened our range of energy solutions and services to ensure that LNG is readily available and accessible to customers of all demand capacities. For instance:

• VPS: The Virtual Pipeline System (VPS) solution was launched in September 2020, delivering LNG to offgrid customers throughout Peninsular Malaysia. This

initiative enables various industries and sectors to switch to a cleaner energy source, even in remote locations.

• LNG Bunkering Solution: Introduced in November 2020, this solution supports the use of LNG as a cleaner marine fuel. Southeast Asia’s first dedicated LNG bunkering vessel, MV Avenir Advantage, spearheads our efforts to comply with International Maritime Organisation 2020 regulations.

We have also increased flexibility in our commercial endeavours by offering flexible pricing and delivery terms which include hybrid pricing structures that combine oil indexation with spot market pricing. This flexibility can make LNG purchases more economically viable for a broader range of customers in different global markets. For example:

• Flexible contract terms: Collaborative contracts allowing adjustments in delivery schedules,quantities, and pricing based on market conditions.

• Hybrid contracts: Blending features of traditional and spot market arrangements for pricing stability with options for flexibility.

• Indexation and price formulas: Tailored contracts using innovative pricing mechanisms aligned with market realities.

• Portfolio contracts: Offering access to a diverse range of LNG supply sources from our global assets.

All these efforts combined are designed to not only increase the accessibility of our LNG molecules, but also to provide customers with responsibly produced energy.

How is Petronas working to minimise emissions from its LNG plants, in Malaysia and elsewhere? How can these lessons and experiences be applied to future projects?

PETRONAS was the first oil and gas company in Asia to set a Net Zero Carbon Emission (NZCE) 2050 pathway in 2020 during the COVID-19 pandemic in line with our Statement of Purpose, “A progressive energy and solutions partner, enriching lives for a sustainable future.”

Staying true to our NZCE 2050 aspiration, we are always committed to minimise emissions from our operations.

This commitment is underscored by our dedication to operational excellence, ensuring our assets and operations are not only well-organised but also optimised for efficiency and sustainability. We are working towards capping our Scope 1 and 2 GHG emissions from our assets, at 49.5 MT CO2 equivalent by 2024. To achieve this, our key efforts include:

• Beginning earlier this year, our PETRONAS LNG Complex (PLC) in Bintulu has been gradually powered

by hydroelectricity, allowing us to decommission old and inefficient gas turbines. The electrification of PLC aims to reduce GHG emissions by replacing natural gas-powered turbine generators with alternative energy sources by approximately 40%.

• Meanwhile, our carbon capture and storage (CCS) at the offshore Sarawak gas field (Kasawari) will come online by 2026 with the potential to reduce CO2 emissions by approximately 76 MT.

These initiatives showcase that traditional energy operations can transition towards greener practices. These efforts are complemented by significant investments in operational excellence, which focus on optimising processes and enhancing efficiency, thus reducing the overall carbon footprint.

Beyond our efforts at home, our venture in LNG Canada is set to produce LNG with one of the lowest carbon intensities in comparison to other LNG plants in the world upon completion. This is achieved through advanced technologies, design features as well as stringent environmental standards at LNG Canada which incorporates electrification and renewable energy integration to reduce the carbon emissions during LNG production.

The low GHG footprint from LNG Canada will be achieved via a combination of factors:

• Raw feedgas from Montney which has a lower CO2 composition.

• Use of widespread electrification of upstream operations such as drilling and processing.

• Use of renewable power from British Columbia’s hydro-driven electrical grid.

• Use of highly efficient gas turbines at the liquefaction plant.

These factors combined would mean that LNG Canada is expected to be one of the greenest LNG plants in the world. LNG Canada is designed for 0.15 T of CO2 equivalent per tonne of LNG, well lower than the global emissions average of 0.26 to 0.35 T of CO2 equivalent per tonne of LNG produced.

We believe that LNG Canada sets a precedent for future LNG projects worldwide, demonstrating that economic goals and environmental responsibility can be synergistically aligned to foster sustainable energy development.

These lessons and experiences highlight the importance of integrating sustainability, operational efficiency, and advanced technologies from the outset. By applying these principles early on, we can ensure that new ventures are aligned with both environmental and economic objectives, setting a strong foundation for longterm success and resilience in a rapidly evolving energy landscape.

Kasawari Gas Platform in Sarawak. Source: PETRONAS

ABANG YUSUF ABANG PUTEH, SENIOR VICE PRESIDENT OF PETRONAS LNG ASSETS

Can you point to some recent examples of operational improvements specifically aimed at tackling methane emissions? What is the importance of collaboration/ partnerships in supporting technology and innovation? Can you provide some examples?

Recently, PETRONAS achieved the Oil & Gas Methane Partnership (OGMP) 2.0 Gold Standard Pathway for the 2023 reporting year. This was achieved partly due to progress made in measurement and reporting, which aligns with the Methane Guiding Principles (MGP). Our first report to OGMP 2.0 in 2023 included a five-year implementation plan towards achieving the OGMP 2.0 Gold Standard for both operated and non-operated assets. The methane figures reported cover all common emission sources in our upstream and gas assets.

Recognising that gas flares and vents are the primary contributors to methane emissions, we have implemented targeted reduction initiatives. In 2023, we successfully completed three vent and one flare reduction projects in our Upstream business, along with three flare reduction projects in the Gas business in Malaysia, collectively reducing emissions by 0.73 MT of CO2 equivalent annually.

In addition, PETRONAS has also established a Carbon Management Division (CMD) in 2022 to manage carbon emissions produced from our operations. Their mission is to pursue key low-carbon initiatives, prioritising carbon dioxide management and the development of CCS business, with a target to reduce 11.6 MT of CO2 equivalent of emissions from existing facilities by 2025, achieve zero venting by 2024 and zero routine flaring by 2030.

The CMD will focus on two areas:

• Decarbonise existing facilities through operational efficiency improvements which will lead to the reduction of venting and flaring thus minimising methane emissions.

• Manage storage readiness and offerings for high CO2 fields by offering CCS as a pathway of decarbonisation for industries in the region.

Meanwhile, in collaboration with ASEAN energy operators, governmental agencies, and international organisations, PETRONAS launched the ASEAN Energy Sector Methane Leadership Programme (MLP) and announced methane abatement flagship projects in collaboration with Japan Organization for Metals and Energy Security (JOGMEC). This programme is designed to enhance capacity building and provide strategic direction on methane management practices in the ASEAN region, emphasising the reduction of methane emissions through various educational and cooperative activities. This will pave the way for PETRONAS to further enhance the company’s sustainability practices and improve operational efficiency, in line with global environmental standards.

How can digitalisation/AI deliver greater operational efficiency and sustainability, and what work is PETRONAS doing in this field?

At the heart of our operations, we are driven by our customer-centric approach – meeting our customers’ differing needs by providing sustainable, easy to access and flexible energy solutions. To bring this commitment to life, we’ve honed on digitalisation as one of the key areas to further fine tune our operations.

We’ve pioneered cutting-edge digital solutions to revolutionise LNG production at the PETRONAS LNG Complex (PLC) as well as our FLNG facilities. The implementation of these digital solutions showcases our dedication to efficiency, productivity, and sustainability in the following areas:

• Minimising energy consumption: Employing a closeloop approach with advanced process control (APC)

for optimised fuel gas utilisation. Utilising steady-state simulation and machine learning, it converts excess boil-off gas (BOG) or feed gas into LNG, enhancing overall efficiency.

• Reducing energy costs: Implementing a hardwaresupported solution to reduce energy costs through process digital simulation. Its phased implementation, from advisory to a close-loop approach with APC, guarantees reliability and success. These digital initiatives resulted in a substantial GHG reduction of 88,000 T of CO2 equivalent in 2022.

• Operational efficiency and productivity: We manage operations at FLNG from a Remote Operation Centre (ROC) located onshore. This setup reduces the need for manpower onboard the floater while ensuring operations are conducted as planned.

Southeast Asia is emerging as a hotspot for prospective CCS projects. What advantages does the region possess as a hub for this technology and walk us through PETRONAS’ progress in studies?

According to a brief by Global CCS Institute, Southeast Asia is ideally positioned to become a major hub for CCS projects, thanks to its compact geography, proximity to significant CO2 emitters, and suitable geological formations such as depleted oil and gas fields, which are ideal for CO2 storage.

Located outside of the earthquake-prone zone, Malaysia is blessed with geographical and geological advantages. There are sufficient sink capacities to cater for our oil and gas operations, hard-to-abate industries in the country as well as countries looking for permanent CO2 storage. PETRONAS is actively capitalising on these advantages to position Malaysia as a leader in CCS within Asia. To this end, we have initiated several key CCS projects.

We have embarked on the CCS project at the Kasawari gas field in Sarawak to reduce the inherent emissions from feed gas during exploration. Planned to come online by 2026, it is expected to reduce flared carbon dioxide emissions by 3.3 MT of CO2 equivalent annually, making it one of the largest offshore CCS projects in the world.

Additionally, by leveraging PETRONAS’ expertise and technical know-how, we are not only developing dedicated storage sites for our own gas production from fields such as Kasawari, Lang Lebah, and the BIGST fields (Bujang, Inas, Guling, Sepat, and Tujoh) located offshore Kerteh, Terengganu, but also establishing three CCS hubs in Malaysia. These hubs, known as the Northern, Southern and Eastern storage hubs, are aimed at driving

Our innovation began with pioneering solutions like our FLNG facilities, made to not only unlock remote gas reserves, but also introduce a more cost-effective alternative to conventional solutions.

ABANG YUSUF ABANG PUTEH, SENIOR VICE PRESIDENT OF PETRONAS LNG ASSETS

solutions for the region’s transition towards a low-carbon future. Based on our estimates, Malaysia could provide up to 80 MTPA of storage capacity by 2050. We have also undertaken strategic partnerships and technology advancements. PETRONAS collaborates with Japan Petroleum Exploration Co. Ltd. (JAPEX) to enhance techniques in CO2 capture, storage, and transportation while developing methods for effective monitoring of underground CO2. The company has also formed international alliances for LNG bunkering and renewable energy projects that integrate CCS, working with global entities like JOGMEC and JX Nippon Oil to explore CCS applications in high CO2 gas fields in Malaysia. Additionally, we have the Carbon Management Division that was established in 2022, dedicated to spearheading PETRONAS’ CCS strategies and deploying advanced technologies to reduce emissions across our operations in alignment with global standards.

PETRONAS’ LNG Bunkering Vessel. Source: PETRONAS

Improving Situational Awareness in Gas Network Monitoring: The Operational Excellence App

The National Gas Company of Trinidad and Tobago Limited (NGC) manages a natural gas network of onshore and offshore pipelines spanning more than 1000km, with a current maximum installed capacity of 4.4 billion cubic feet per day (4.4Bcf/d). The network serves the LNG sector, large downstream petrochemical and non-petrochemical customers, and also supplies light commercial and industrial customers.

The measurement and distribution of natural gas on this network is managed via several manned and unmanned sites distributed across Trinidad and Tobago. With supply being highly responsive to small fluctuations in availability, the need to be “in the loop” regarding the status of the gas network is paramount, and expected to be so for some time.

This was the impetus behind NGC’s in-house Operational Excellence App (OE App), developed in 2023 to serve as a real-time gas network monitoring solution. While traditional monitoring approaches were sufficient in years past, the delicate balance between gas supply availability and gas available for demand necessitates a real-time approach to gas monitoring to manage the supply-demand balance. In this regard, use of a real-

time monitoring app in conjunction with the traditional network monitoring methods such as SCADA, can lead to improvements in overall pipeline safety, and network efficiency. As an adjunct benefit, the OE app is being used alongside satellite and optical gas imaging for monitoring/ measuring methane emissions, thus contributing to NGC’s emissions reduction campaign.

The OE APP

The OE App comprises eight (8) modules:

• Gas Value Chain

• Gas Supply Summary

• Supply

• Demand

• Curtailment

• Network Health

• Gas to Power Efficiency

• Downtime

Each module harvests field data from multiple sources and presents it as a dashboard so that real-time, 24hour data is available. The user-friendly interface in the app visualises data and generates alerts on the relevant screens when required.

Benefits of real-time monitoring

• Employees report a much higher degree of situational awareness since the app has been implemented. This is reflected in greater responsiveness, more rapid decision-making by executive leadership, and greater incorporation of real-time data into ongoing monitoring and analysis of the gas transmission network.

• Use of the app helps foster a culture of learning and innovation. By applying analytics to the harvested data, operational performance can be tracked, measured, reported upon and appropriate decisions made to maximise efficiency and minimise waste.

• Data analytics can help identify patterns that indicate potential equipment failures, allowing for proactive maintenance.

• By enabling early leak detection, the OE App can minimise potential environmental damage and preclude the need for costly repairs.

• The OE App supports molecular optimisation, safety, reliability, cost efficiency, environmental responsibility, customer satisfaction and risk management.

With supply being highly responsive to small fluctuations in availability, the need to be “in the loop” regarding the status of the gas network is paramount, and expected to be so for some time.

• The app can support future requirements for compliance with safety and environmental regulations – important in an environment of enhanced environmental sensitivity.

The OE App will evolve over time in tandem with the requirements of users. The project is expected to undergo further iterations as NGC continues along its energy transition path.

Uplifting Africa –The Natural Gas (R)evolution

Africa deserves the opportunity to develop its vast natural gas reserves without interference from the Global North or environmental activists

ELLA MINTY DIRECTOR, COMMUNICATION; INTERNATIONAL GAS UNION

Africa is the world’s second-largest and second-mostpopulous continent – often, many refer to it as one would to a single country. Still, Africa is a continent fragmented by 54 different sovereign interests and political/ geopolitical issues, which, often, are difficult to bring under one identifier we call “Africa”.

Africa is the most energy-deficient continent, as it is home to 75% of the world’s population without access to electricity.

Over 640 million Africans need access to modern energy. Per capita consumption of energy in sub-Saharan Africa (excluding South Africa) is 180 kWh, compared to 13,000 kWh per capita in the United States and 6,500 kWh in Europe.

Almost three-quarters of Africa’s population does not have access to clean cooking facilities and, as shocking as it may be to read this, the cost of premature deaths from air pollution is estimated to be almost 9% of Africa’s GDP.

For instance, Nigeria has 90 million people without access to electricity. The country has the highest level of

absolute energy poverty in the world and accounts for 12% of the global energy access deficit.

The Democratic Republic of the Congo (DRC) has one of the lowest energy access rates in the world—just 20% of its population is projected to have access to modern energy by 2030. It is home to the third-largest population in the world without electricity access. And yet, despite all of this shocking data for many of us who are so dependent on energy in all its forms and used to saying “Alexa, switch on the TV”, there is an entire continent out there – only 8 hours by plane from Europe, the USA and Asia – that largely lacks the most basic of human entitlements: switching on the light.

To add insult to injury, suddenly we demand and totally expect Africa to “decarbonise” its energy system, reach “net zero”, switch to “renewables” and all the usual narrative of the day.

Simple questions

My questions are very simple: what energy system?

“It’s high time we discussed matters as they are and understand that what works in Europe or the US does not work nor apply to 54 countries...”

Switch to “net zero” from what???

It’s high time we discussed matters as they are and understand that what works in Europe or the US does not work nor apply to 54 countries, many of which are on the brink of having their entire financial systems collapse in the wake of sub-Sahara Africa’s average debt-to-GDP nearly doubling between 2013 and 2022, from 30% to 60%.

In 2023, the debt servicing costs reached 17% of government revenues – the highest in 24 years. This has drastically reduced the public finances available for improvements to the energy sector across the African continent.

As it is currently estimated that US$400 billion of investment will be required to increase electricity transmission and distribution in Africa alone by 2050, why are we even talking about “decarbonisation” of the African energy system since to have an energy system at all, the first step would be that of having an energy infrastructure that, as a minimum, can provide electricity across the continent?

Africa only received 2.4% of global renewable energy investment between 2010 and 2020, of which threefourths was concentrated in South Africa, Morocco, Egypt, and Kenya.

However, while energy poverty is dramatic across the African continent, few may be aware that Africa is still exceptionally energy resource-rich: it was home to nearly 40% of global gas discoveries between 2011 and 2018. This includes the discoveries in Mozambique, Tanzania, Egypt, Senegal, and South Africa.

Today, Africa holds roughly 13% of the world’s natural gas reserves. Africa’s natural gas industry has significant untapped potential, with over 5,000 bcm of natural gas reserves discovered but not yet approved for development.

Africa exports 45% of its natural gas. For example, Mozambique has 100 trillion cubic feet of proven natural gas reserves, the third-largest natural gas reserves in Africa. In 2022, Mozambique sent its first shipment of liquefied natural gas to Europe, despite gas contributing

just 1% to the country’s electricity supply.

Leveraging natural gas is the most important, the fundamental first step towards solving Africa’s energy crisis and its path towards decarbonisation, as simply switching from coal to natural gas results in 50% less CO2 emissions: in the first eight months of 2024 alone, Africa imported almost 10 MT of coal!

By providing a poverty-alleviation platform for underdeveloped and developing economies, from clean cooking to national industries, these economies can scale rapidly to meet their geographical and social potential, using an energy source much cleaner and more sustainable than coal or wood, ensuring that wild and endangered habitats remain protected.

I worked in Africa (East and West) for many years. I understand the struggles of the daily life in Africa and the hurdles the African economies face every day, including a severe lack of access to finance, African-owned or otherwise.

Decarbonisation aspirations and finance

Financing oil and gas projects, especially in the exploration phase, has become almost impossible today as we need to “decarbonise”.

Of course we do, but there is a huge difference between the “energy transition” and the “just transition”. The latter allows the energy systems to gradually decarbonise, meanwhile the “energy transition” is expected to happen “no matter what”.

It doesn’t work like that, not in the real world, anyway. There is a clear alignment between countries with low levels of energy access and limited ability to mobilise private capital and those that perform poorly on the World Bank’s Doing Business rankings.

Deregulation of the energy sector, the creation of public-private partnerships, and the adoption of legal and regulatory reforms can play a critical role in mobilising private capital for Africa’s rise from its current energy poverty.

Today, oil and gas investments are almost “no go” subjects. They shouldn’t be because the evolution of the

Which bank, if the business case for a project is watertight, would say no to financing a project which can demonstrate an immediate reduction in CO2 emissions by switching to natural gas?

global energy systems cannot happen without the support of conventional fuels, especially without that of natural gas.

And when raising capital, both private and public, ESG financing and project data are fundamental in doing that. Which bank, if the business case for a project is watertight, would say no to financing a project which can demonstrate an immediate reduction in CO2 emissions by switching to natural gas?

Which bank would say no to financing a project that allows entire villages to switch from burning wood to cook, to using gas? Do we want to protect natural habitats and threatened species? And I could continue.

Tragically, it has taken the Russian invasion of Ukraine to stimulate a rational debate on the role of gas, in particular during the transition and in light of the need for resilient and reasonably priced supplies.

With governments struggling to balance strategic considerations (not buying Russian oil and gas) with providing energy to their populations, whilst scrambling to boost investment in renewables and fast-track legislation and fiscal policies to encourage the private sector to join them, the discussion on the role of hydrocarbons during the transition has moved centre stage.

With the inclusion of certain gas and nuclear activities within the EU Taxonomy (as “green” activities), CCUS-

enabled gas projects are now accepted as a valid use of ESG capital, and more ESG-branded funds investing in the energy majors means that ESG investments can really help to increase the pace and scale of transition.

Reducing net carbon emissions to zero by 2070 – and thus keeping global warming to 2° C above pre-industrial levels – will require investment of nearly US$75 trillion, according to Goldman Sachs Research.

Gas is essential to human progress and global growth, and sustainability – in any form –cannot be realised without energy security and affordability.

A “feedstock” to critical industries, natural gas boosts economic growth, employment, and production of strategically vital products such as medicine, pharmaceuticals, food production, biotechnology, fertilisers, steel, cement, hydrogen and others.

By increasing the gas use across all industrial and private applications, enhanced sustainability and public health benefits can be obtained by tackling poor air quality and health problems deriving from dirtier fuels, as air pollution is one of the greatest environmental risks to health.

It is easy, too easy to dictate to others from a position of power – let’s stop telling Africa what it needs. For a change let’s let Africa tell us what we can do to help.

As the world faces growing uncertainty, the Gas industry is essential to building more prosperous, secure and sustainable societies for everyone, through energy diversification, innovation and collaboration.

Learn more about how the IGU is working to create a sustainable Gas industry at www.igu.org/resources/igus-manifesto

FGSZ: Hungarian Transmission System

Op erator

FGSZ Ltd., as a member of the MOL Group of companies and the sole natural gas transmission system operator in Hungary, looks back on a long and rich history in natural gas transmission. In the heart of Europe, FGSZ and its legal predecessors have been working for more than 100 years to secure the natural gas supply of Hungary and the Central and Eastern European region.

Activity

FGSZ owns and operates the nearly 6,000 km long high-pressure natural gas transmission pipeline system covering the territory of the entire country, supplying gas distribution companies, power plants and large industrial consumers. Besides domestic natural gas transmission, FGSZ has bi-directional transmission capacities to neighbouring Romania, Serbia, Croatia, Slovakia and Ukraine, and provides uni-directional physical transmission from Austria to Hungary.

The company’s main activity is the construction and operation of high-pressure natural gas pipelines, as well as the allocation of natural gas transmission capacity. The company’s main responsibilities also include the odorisation, continuous measurement and quality control of natural gas delivered to partners, as well as the

maintenance of the hydraulic balance of the transmission system, in compliance with the most stringent international standards.

FGSZ is an active member in various international organizations of gas market representatives, including the International Gas Union (IGU), the European Network of Transmission System Operators for Gas (ENTSOG), and the Gas Infrastructure Europe (GIE).

Development Projects and Initiatives

Hungary’s security of supply is inseparable from the energy security of the Central European region and that of the whole of Europe. FGSZ is committed to enhance flexibility and the security of supply of the regional natural gas market aiming to diversify the source of natural gas and the route of its transportation. The company’s

ongoing developments aspire to establish new routes, such as the Vertical Corridor to connect Greece, Bulgaria, Romania, Ukraine, Moldova, Hungary and Slovakia for transport of additional natural gas quantities from the south to the north. In addition, FGSZ continuously upgrades and expands existing interconnections upon market needs to ensure access to new sources, as well as to advance existing trade opportunities and to create new ones.

Regional Booking Platform

Launched 10 years ago, FGSZ has become a leading software solution provider in Europe for gas transmission companies with the RBP software suite, covering the entire business process from capacity management through scheduling and trading to financial settlement.

FGSZ’s Web-based, modularised business applications are built into three distinctive platforms:

• RBP Capacity Booking Platform (primary and secondary capacity allocation, linepack flexibility services)

• Transport Platform (nomination, scheduling, balancing, allocations and settlement)

• Trading Platform (anonymous, cleared spot gas and hydrogen trading)

The inclusive, open-end development policy of

HIGHLIGHTS:

5,889KM

Long high-pressure pipeline system

28 ENTRY POINTS

Nearly 400 gas delivery stations

8

Compressor stations

700 6

Employees

Interconnection points

RBP enables the continuous improvement and legal compliance of our services.

RBP in numbers:

• 43 million auctions run

• 17 TSO and SSO members in 12 countries in Europe (9 EU, 3 non-EU)

• 460 subscribed gas trading companies

Sustainability

In line with the European Union’s climate policy, FGSZ places strong emphasis on sustainability and green transition. FGSZ is exploring adaptation possibilities of the existing transmission mechanisms and examining the possible integration of renewable gases (biomethane and hydrogen). To make its current operation more sustainable and reduce greenhouse gas emissions, FGSZ has introduced strict methane leak detection protocols and repair activities, as well as energy efficiency improvements.

Ireland’s pathway to a net-zero gas network

Under the ambitious Pathway to a Net Zero Carbon Network plan, Ireland’s natural gas network will transport 100% renewable gases by 2045, with its transition starting with blending and then the gradual repurposing of pipelines, and ending with its split into two distinct systems for green hydrogen and biomethane.

RORY SOMERS, GNI’S REGULATORY AND COMMERCIAL MANAGER FOR ENERGY SECURITY

Gas Networks Ireland (GNI) set out its vision earlier this year for how the country’s modern and extensive natural gas pipeline network can be fully repurposed for biomethane and green hydrogen within the next two decades, offering a pathway to decarbonisation that minimises both cost and disruption.

Under the ambitious Pathway to a Net Zero Carbon Network plan, the network will transport 100% renewable gases by 2045, with its transition starting with blending and then the gradual repurposing of pipelines and ending with its split into two distinct systems for green hydrogen and biomethane. Green hydrogen is expected to account for around two-thirds of the volumes transported in 20 years, and biomethane the rest.

Green hydrogen and biomethane are recognised in Ireland’s latest Climate Action Plan as key pathways

towards net zeros. While reducing emissions, they can ensure stable, secure and homegrown energy supply as Ireland moves towards increased reliance on renewable energy. They also offer a decarbonisation solution for sectors where electrification has limitations. In addition, green hydrogen is a means of storing Ireland’s excess wind power that might otherwise be curtailed because of system constraints.

“Ireland has one of the best capacities for biomethane generation per capita in Europe,” Rory Somers, GNI’s Regulatory and Commercial Manager for Energy Security, tells Gas in Transition (GiT). “We also have one of the best wind resources in Europe, which will allow us to produce hydrogen for domestic demand and ultimately for export.”

The Pathway plan recognises that most of Ireland’s

almost 15,000 km of existing natural gas pipelines can be leveraged to carry these gases from where they are produced to where they are needed, forgoing the need to invest in extensive new transport infrastructure. The country’s gas network today provides around a quarter of Ireland’s energy needs, reflecting the important role that natural gas plays, generating around half of national electricity each year and up to 90% in peak periods. Gas is also vital for meeting the energy requirements of Ireland’s industry, and the heating and cooking needs of businesses and homes.

Ireland’s natural gas demand in the power sector is projected to shrink by a third by 2030 versus the level in 2023, according to GNI. Notably, this decline will coincide with a continuing decrease in output at Ireland’s main gas field Corrib. At the same time, though, Ireland’s overall power demand is due to expand by 30% by the end of the decade, increasing the importance of the gas network in providing the capacity, resilience and responsiveness to complement intermittent renewables. But instead of natural gas, it will increasingly transport green gases.

Biomethane is fully compatible with Ireland’s gas network, given that it meets the same technical standards as natural gas. While repurposing the system to hydrogen is more complicated, a 2022 study by GNI concluded it was feasible. GNI has already approved the network to be able to transport hydrogen blends of up to 20%, and is developing a hydrogen technical strategy to ensure the system can transport and store both blends and 100% hydrogen in the future, Somers says. Ireland’s relatively modern gas network compared with those of other European countries also consists of higher quality steel with better traceability of materials, making it more adaptable to hydrogen.

A 2021 report by the EU’s Agency for the Cooperation of Energy (ACER) also estimated that repurposing existing natural gas pipelines was equal to only 10-35% of the cost of building new ones dedicated to hydrogen.

In preparation of the plan, GNI’s biomethane and hydrogen programme teams engaged both with government and industry, to determine potential future production and demand, while its future networks team has worked with the Irish electricity transmission system operator (TSO) to establish models for the integrated energy system.

“Pathways is really the culmination of all this work, allowing GNI to develop a plan in line with national and European policies that demonstrates how Ireland can achieve a net-zero carbon gas network for the future,” Somers says. It is also a plan that recognises “that gas will be needed in the interim to ensure the continued security and resilience of Ireland’s energy system.”

Production growth

Biomethane is expected to see greater and faster scaleup than green hydrogen in the nearer term. GNI began injecting biomethane into the gas network in 2019, but production remains modest, with the operator projecting that only a mere 62 GWh will be produced this year. However, Ireland’s stated ambition is to raise this to 5.7 TWh by 2030. In a 2023 report, GNI estimated that the country could produce as much as 14.8 TWh of biomethane, with more than three-quarters of prospective projects having the potential to connect to the gas network.

Developing hydrogen supply will be supported by the expansion of Ireland’s offshore wind sector. The government’s Climate Action Plan is targeting an increase in offshore wind capacity to 7 GW by 2030, of which 2 GW will be dedicated to producing hydrogen with electrolysis. The National Hydrogen Strategy sees the country producing up to 150 TWh of green hydrogen annually by 2050, far surpassing its natural gas demand last year of 58 TWh.

Into the next decade, domestic production growth and developing import options will result in hydrogen emerging as the dominant networked gas by 2040. This will enable conversion of Ireland’s gas-fired power plants and biggest industrial gas users to hydrogen. Beyond main transmission lines, some distribution networks can also be repurposed to help energy users decarbonise where electrification is not an option.

GNI’s Pathway to a Net Zero Carbon Network is consistent with Ireland’s current energy and climate policy. How quickly the network is transformed to 100% renewable gases is uncertain, as it depends on how domestic demand and supply shapes up, as well as developments in UK, EU and international energy, the operator notes. However, GNI separates the process into four distinct phases.

Foundation and development

The Foundation Phase running from now until the end of 2027 will focus on planning, testing, trialling and safety case development, and the establishment of initial injection sites. The aim by the end of this period is to enhance the network’s security and resilience capabilities, readying it for transformation. GNI predicts biomethane use will reach 0.7 TWh by 2027, while overall demand in the network grows to 56.8 TWh, from 52.2 TWh in 2023. The Development Phase between 2028 and 2032 will see hydrogen blending start, as well as the emergence of an initial hydrogen cluster likely involving some repurposed gas pipelines. Development is also expected to get underway on other large projects, most likely

JOSEPH MURPHY

at port locations. Detailed planning for key network repositioning projects will be completed and planning and piloting for future network conversions started, according to GNI.

In this period, overall network gas demand is seen falling to 46 TWh, of which the volume of biomethane supply will have risen to 6.2 TWh, complemented by 1.3 TWh of green hydrogen.

Repositioning

In the third, Repositioning Phase between 2033 and 2040, hydrogen is expected to become increasingly available, with the focus shifting to more wholesale gas network repurposing. Hydrogen clustering opportunities will become exhausted, requiring connecting with each other for resilience. The volume of hydrogen in the network will reach a point where the conversion of pipelines to 100% hydrogen will be necessary, the plan states. Key network flexibility projects will need to be implemented to prepare the network for full repurposing to renewable gases only.

Infrastructure will be reviewed on a case-by-case basis to decide whether assets are repurposed or decommissioned, and reinforcement and network development will be considered.

Some network compression and reinforcement work will be undertaken to adjust for the difference in transporting 100% hydrogen, given it is less energy dense than natural gas. Some parallel network development, most likely the twinning of the Cork-Dublin transmission

With the right incentives, biomethane deployment in Ireland can be accelerated like in Denmark, the European leader … We believe tariff support is needed to achieve the national target by 2030.

RORY SOMERS, GNI’S REGULATORY AND COMMERCIAL MANAGER FOR ENERGY SECURITY

pipeline, will be necessary to create the flexibility for introducing 100% renewable gases on distinct networks and to connect hydrogen clusters.

In the mid-to-late 2030s, depending on how hydrogen production scales up, 100% UK hydrogen could become available through the Moffat Entry Point along with the emergence of a Dublin hydrogen power generation cluster. Initially one interconnector, IC1, would convert to hydrogen, increasing the resilience and security of the emerging hydrogen system. This will support future ring main conversions and the integration of the hydrogen clusters into the national network, while also providing Northern Ireland with the option to convert the Scotland to Northern Ireland Pipeline to hydrogen or remain on natural gas supplied by the second interconnector, IC2.

By the end of this period, the focus will have shifted to designing the future hydrogen conversion programme and supporting customer and stakeholder communications programmes, GNI states.

GNI expects hydrogen use to overtake biomethane during this period, rising to 6 TWh by 2036 and 17.1 TWh by 2040, while biomethane consumption grows to 10 TWh and then 14 TWh. Overall network gas demand will shrink to 40.4 TWh in 2036 and 37.2 TWh in 2040.

Conversion

The final Conversion Phase in 2041 through 2045 will see the network split into two distinct systems for biomethane and hydrogen.

By the period’s end, Northern Ireland’s gas transmission system can be converted to hydrogen, transporting indigenous production and supplies via the South North Pipeline and the Scotland to Northern Ireland Pipeline. But it will be up to Northern Ireland’s own stakeholders to decide on the transition pathways, and biomethane may also become the region’s dominant gas.

In the Republic of Ireland, the current transmission ring main will begin converting to hydrogen transport, ultimately supplying all gas-fired power generation and very large industrial customers. A new parallel biomethane transmission backbone will meanwhile supply consumers along the existing Cork-Dublin pipeline, and the majority of connected distribution networks, helping users decarbonise in cases where electrification is very challenging. The biomethane distribution networks will continue supplying energy users directly in the main conurbations in Cork, Limerick, Tipperary, Waterford, Kilkenny, Carlow, Laois, Kildare, Dublin, Meath, Louth, Cavan, and Wicklow. Biomethane-fuelled district heating schemes may emerge as an alternative in some areas.

The hydrogen transmission network will also support a distribution tier of networks, continuing to directly supply large consumers where electrification is a major challenge. Ireland’s second, higher capacity interconnector will also convert to hydrogen, providing back-up supply from the UK and continental Europe, and an export route if Ireland’s hydrogen production exceeds its own needs. Post-conversion, Ireland’s two networks will deliver

renewable gases only, and any assets that are deemed unneeded will have been decommissioned. Notably, demand for sustainable networked gas is expected to rebound, reaching 44.1 TWh by 2045, of which 30.1 TWh will be hydrogen and 14 TWh biomethane.

A maturing hydrogen economy will depend increasingly on the national hydrogen ring main for supply, as an efficient means of transporting the fuel from production to consumption centres. Growing power demand will also result in higher levels of utilisation at hydrogen-fired power plants, and widely available networked hydrogen will make the fuel an accessible option for decarbonising heavy transport.

What next?

Europe’s low-carbon hydrogen development may have progressed slower than envisaged in the 2020 EU strategy, partly because of COVID-19, geopolitical challenges and cost pressures, Somers says, but growing policy support in recent years means the sector is gaining traction and production growth should accelerate.

“For biomethane, an appropriate support scheme to underpin investment is a critical requirement to accelerate production in Ireland,” he says. “With the right incentives, biomethane deployment in Ireland can be accelerated like in Denmark, the European leader.”

The Irish government’s provision of subsidies for anaerobic digesters is “an important start, however we believe tariff support is needed to achieve the national target by 2030.”

The Case for Complexity –All Fossil Fuels and Regions Are NOT the Same

A pair of recent reports from the International Energy Agency highlight the chasm between real insights and attention-grabbing media headlines.

“A good place to start is the much-quoted headline on fossil fuel demand peaking later this decade. Allow me to be very clear: not all fossil fuels are the same.”

In the space of less than a week, the International Energy Agency (IEA) released two major reports – its flagship World Energy Outlook 2024 (WEO), followed by the less heralded Southeast Asia Energy Outlook 2024 (SAEO). Both are incredibly rich in insight, contain fascinating nuggets of data and provide an invaluable service in driving informed debate among anyone who cares about how we can achieve a successful energy transition.

Less helpful, however, are some of the glaring contradictions between the high-level takeaways and the press headlines that I have seen and endlessly re-hashed from the WEO over the past weeks, and the much more nuanced, regional detail that can be found when digging into the content of both reports.

Not all fossil fuels, not all peaks, are the same

A good place to start is the much-quoted headline on fossil fuel demand peaking later this decade. Allow me to be very clear: not all fossil fuels are the same. Natural gas is a much cleaner burning fuel than coal and oil and, therefore, is fundamental to the energy transition and the ongoing process of decarbonisation across power generation, heating, industry and transport.

The IEA always splits out coal, oil and gas in its data and graphics, and acknowledges how gas can increasingly

displace higher-carbon fuels, particularly in the fastgrowing, coal-dependent Asian economies. Yet in the catch-all headline, fossil fuels are dumped into one category and aggregated across vastly different regions of the globe.

As the IEA itself says, “advancing clean energy transitions requires tailored strategies that consider both regional and national contexts.”

The imperative for a region-by-region view is, indeed, perfectly illustrated in the SAEO where we see how, unlike other regions, CO2 emissions are still rising in lockstep with gross domestic product (GDP) growth – largely due to the continuing dominance of coal in the energy mix. Thus it is not surprising, in its SAEO, that the IEA predicts that the regional gas demand will continue to rise to 150% of today’s levels by 2050 in its Stated Policies Scenario (STEPS) – with coal peaking around 2040.

The dramatic description – almost clickbait, if you wish – of “a wave of LNG supply” is another eye-catching WEO headline.

The WEO’s analysis which underpins this claim is, undoubtedly, based on credible and verifiable data, but it also needs to be seen as only one of a range of outlooks, dependent on a myriad of assumptions around individual commercial and project decisions.

Complicating this already uncertain supply picture

“There are, sadly, already too many individuals in our political sphere who prefer to pander with wishful thinking and simplified messages which we might want to hear...”

is a hugely divergent set of global gas demand growth forecasts and scenarios – even across the various WEO scenarios themselves!

Looking regionally, Southeast Asia – for examplebecomes a net gas importer later this decade in two of the IEA’s scenarios, with LNG becoming increasingly important given the limited opportunities for pipeline connections.

Yet despite these great uncertainties on both the demand and supply side, the WEO then attempts to predict gas prices in the late 2020’s, territory into which even hardened LNG traders and company CEOs would fear to tread. It does seem somewhat contradictory that the WEO places such repeated emphasis on the importance of energy security amid great geopolitical turmoil and fragile energy systems, yet then appears to overlook this complexity when making the statements that then make their way into its headline takeaways!

Critical gas infrastructure

Against such a range of unknown future market, geopolitical and societal developments, I believe that the case for continued investment in gas and its infrastructure, far from being “weaker than ever”, is actually a critical down-payment on the robustness of our global energy systems. The flexibility afforded by the global LNG market, in particular, has recently proved once again its ability to give economies across the globe the resilience needed to keep energy flowing

uninterrupted to households, industries and critical services.

Both IEA reports are absolutely right to emphasise the lack of basic access to energy for millions of people and to conclude that no global energy transition will be possible while so many lack access to secure and affordable energy.

There are, sadly, already too many individuals in our political sphere who prefer to pander with wishful thinking and simplified messages which we might want to hear, rather than explaining the messy and difficult tradeoffs that we are likely to face as we navigate through a complex, regionally differentiated energy transition.

If IEA resists the temptation to join them, it will remain a true guide for policy makers and publics alike, and do full justice to the wonderful resources, analysis and creative insight their reports provide.

There comes a time, and I believe this has already arrived, to reject wishful thinking – irrespective of how difficult it may be for some to come to terms with it. Climate pledges and their associated energy scenarios are aspirational and largely dependent on the national legislators’ willingness and ability to enforce them. Energy consumption patterns and mixes are driven by market forces (industry and consumers) and by those legislators’ ability to ensure that their national socioeconomic priorities are aligned to the actual needs of the people they have a duty to serve.

Managing methane is a broad-spectrum exercise

What began as boots on the ground, safety-related monitoring for leaks has evolved into a complex spectrum of leak detection that extends from the ground to space.

LUNAN

Back in the day, before NGOs, greenhouse gases, global warming and Paris, the natural gas industry, whether a production well, a gathering system, a local distributor, a gas-fired power plant or an intrastate pipeline, worried mainly about methane leaks from a safety perspective.

The safety aspect was most prevalent at the local distribution level, where the proximity of distribution and service lines to residential and commercial developed heightened awareness that any significant leak could lead to an explosion, with dire consequences for those living and working nearby.

To address those concerns, local distribution companies (or distribution service operators in Europe), monitored for leaks along their assets using handheld technology – at first gas sniffers, then later more sophisticated optical gas imaging cameras and other technology.

Now, however, leaking gas – or more accurately leaking methane, the main component of natural gas – has become a main target in the fight against global warming. And leak detection has become an all-encompassing effort for the industry, spawning new technologies that are increasingly capable of detecting emissions ranging from pin-hole leaks in residential gas meters to massive plumes emanating from leaky gas transmission pipelines or coal mines.

But Paul Wehnert, executive vice president and chief marketing officer for Houston-based methane emissions detection and management services provider Heath Consultants, says leak detection is really still the same, even though the reasons behind it might have changed.

“The regulations have shifted from an attention on safety to an attention on climate change,” he tells Gas in Transition. “But I’ve always said that if you side on safety, you will also side on environment – if you go out and find the leak, fix the leak, replace the pipe, do all the things you’re supposed to do from a safety perspective, you will also limit and prevent the effects of methane as a greenhouse gas.”

New rules coming

More than a year ago, the Pipelines and Hazardous Materials Safety Administration (PHMSA), a division of the US Department of Transportation, issued a notice of proposed rulemaking to update decades-old federal leak detection and repair standards that rely solely on human senses and replace them with new requirements mandating the deployment commercially available, advanced technologies to find and fix leaks of methane.

The proposed rule requires pipeline operators to survey their systems more frequently and use advanced leak detection technology – aerial or vehicle surveys,

handheld detection devices and continuous monitoring systems – while providing operators the flexibility to use a range of approaches to meet a minimum performance standard.

Operators would also be required to reduce the volume of fugitive emissions, with new rules aimed at detecting smaller leaks sooner and minimise intentional releases associated with pipeline maintenance and repair.

The proposed rulemaking generated nearly 35,000 comments but has not yet been implemented by PHMSA.

The new regulations, whether from the PHMSA or the Environmental Protection Administration (EPA), require more frequent and accurate leak detection programmes, Wehnert said, taking advantage of hand-held and mobile leak detection technology that is sensitive to parts per billion (ppb), as opposed to older technology sensitive in the parts per million (ppm) range.

“When mobile technology was ppm, the vehicle drove as close to the pipe as possible,” he says. “With advanced technologies, the sensors don’t need to be that close to the pipelines.”

Heath’s Discover Advanced Mobile Leak Detection (AMLD) technology incorporates a pair of laser-based detectors fitted to a vehicle, along with an anemometer to measure wind speed and direction. One of the lasers is calibrated to detect methane, while the other detects ethane, enabling methane emissions from fossil sources like gas pipelines to be distinguished from nonfossil methane escaping from landfills or agricultural operations, Wehnert says.

French major TotalEnergies said last month it was making its methane detection programmes more robust, and would deploy continuous, real-time detection technology at all its operated upstream sites.

Since 2022, TotalEnergies has been pursuing nearzero methane emissions from its operations by 2030, and expects to achieve a 50% reduction this year, putting it on track to achieve an 80% reduction by 2030.

In 2022, it began deploying AUSEA (Airborne Ultralight Spectrometer for Environmental Applications) technology using drones to detect both CO2 and methane (CH4) emissions. That year, more than 1,200 AUSEA flights were carried out over 125 sites in eight countries.

Now, with continuous monitoring, TotalEnergies hopes to enable real-time identification of methane emissions, both fugitive and stationary, and implement immediate corrective actions to stop those emissions.

“Continuous, real-time detection will enable our operators to act in an even more decisive manner in order to reduce our methane emissions and to repair leaks to achieve our near-zero methane emissions ambition,” CEO Patrick Pouyanne said.

“The regulations have shifted from an attention on safety to an attention on climate change.”

PAUL WEHNERT, HEATH CONSULTANTS

The continuous detection plan will be fully implemented by the end of 2025 and will use existing and proven technologies, including Internet of Things (IoT) sensors, infrared cameras, flowmeters and predictive emissions monitoring systems on combustion sources, TotalEnergies said.

Wehnert says drones have a place in surveying gas production, gathering and transmission sites – away from the public – but privacy concerns limit their use by distributors.

Distributors are also experimenting with monitoring by fixed wing aircraft, helicopters and satellites, but those technologies require line of sight and can be hampered by clouds and other ground cover, he says.

Nowhere to hide

Where satellites are particularly useful, Wehnert agrees, is identifying large leaks – so-called super-emitters.

Montreal-based GHGSat has been deploying satellites for several years, and in 2023 its constellation of 10 satellites made more than 3mn observations across 85 countries, in the process identifying nearly 16,000 emissions over the super-emitter threshold of 100 kg of methane/hour.

Since COP28, the company’s satellites have identified more than 20,000 super-emitter plumes, highlighting the scale of the emissions challenge and the need for greater monitoring coverage.

“Industry, governments, and financial services are hungry for this data, which fills a critical emissions knowledge gap,” GHGSat CEO Stephane Germain says. “Since the launch of GHGSat’s first satellite in 2016, we have pinpointed and measured tens of thousands of emissions worldwide.”

GHGSat expects to rapidly expand its constellation over the next two years, with nine new satellites planned

DALE

Source: MethaneSAT

for launch by the end of 2026. The larger constellation, it says, will allow satellites to revisit industrial sites to detect emissions on a daily cadence around the world.

Meanwhile, Environment Defence Fund (EDF), in partnership with the New Zealand Space Agency and others, launched its first satellite, MethaneSAT, in March 2024, designed to measure “the myriad small emissions” unseen by other satellites and quantify the total emissions originating from wide regions and jurisdictions.

“Cutting methane pollution from fossil fuel operations, agriculture and other sectors is the single fastest way to slow the rate of warming as we continue to decarbonise our energy systems,” EDF President Fred Krupp said. “To do that requires comprehensive data on this pollution on a global scale – MethaneSAT will show us the full scope of the opportunity by tracking emissions to their source.”

MethaneSAT has a wide field of view, with each target area measuring 200 km2, and using sunlight reflected off the earth’s surface, it is designed to quantify differences in methane concentrations as small as 3 ppb from an altitude of nearly 600 km.

Orbiting every 90 minutes, MethaneSAT will capture 30 targets a day, or nearly 11,000 a year, and will characterise methane emissions from areas producing more than 80% of the world’s oil and gas, while also looking at agricultural and other emission sources.

MethaneSAT’s first observations were released November 16, revealing emissions across the Permian Appalachian and Uinta basins in the US that were “significantly higher” than existing emissions inventories built on bottom-up engineering estimates. They also align with a growing consensus that small emissions dispersed

“Continuous, real-time detection will enable our operators to act in an even more decisive manner in order to reduce our methane emissions and to repair leaks.”

PATRICK POUYANNE, TOTALENERGIES

over a wide area are responsible for a substantial share of total oil and gas methane emissions, MethaneSAT said.

“MethaneSAT is designed to give us the whole picture of emissions for the first time across all types of production basins, both big sources and thousands of smaller ones,” MethaneSAT mission lead Dr Steven Hamburg said. “It functions like a wide-angle lens, covering large areas in a single image, with great clarity.”

Data collected from MethaneSAT will be augmented by MethaneAIR, another programme led by EDF, in this case to deploy methane measurement technology on a modified Lear 35 business jet.

From an altitude of 40,000 feet, MethaneAIR flights will last five to six hours, mapping and quantifying emissions from oil and gas basins accounting for about 80% of US onshore production, as well as emissions from other sectors. Ten areas, measuring 10,000 km2, will be targeted each month, MethaneSAT says.

“Information used to track methane emissions today is based on extrapolations from very limited measurements,” says Dr Ritesh Gautam, lead senior scientist on the MethaneSAT mission at EDF. “Now we can take robust, reliable measurements directly at an unprecedented scale.”

fueling today with tomorrow in mind

At Chevron, we’re helping bring energy solutions to customers around the world. As global demand for LNG rises, we’re expanding our gas portfolio while also increasing production of renewable fuels. Meeting today’s energy needs while forging new paths to the future.

That’s

MethaneSAT Model. Source: MethaneSAT

Heath-Discover Field Demo July 2024

Giving hydrogen a backbone in the Netherlands

Gasunie is leading the development of a core network that will serve as a backbone for the Netherlands’ future hydrogen market, most consisting of repurposed natural gas pipelines, the company’s executive board member Hans Coenen tells Gas in Transition.

JOSEPH MURPHY

The development of a 1,200-km core hydrogen network in the Netherlands over the coming years aims to cut through the chicken-and-egg problem and establish a backbone for a future national hydrogen market, Hans Coenen, Executive Board Member at Dutch transmission system operator (TSO) Gasunie, tells Gas in Transition in an interview.

The Netherlands already has an extensive natural gas transport system, some of which can be converted into dedicated hydrogen pipelines as natural gas demand declines. In fact, 85% of Gasunie’s hydrogen network will consist of repurposed natural gas pipelines, with the rest needing to be built from scratch.

“Gasunie’s hydrogen network plays a key role in kick-starting the hydrogen market, boosting industry confidence and strengthening the Netherlands’ position as a gateway to the European energy system,” Coenen says.

Even though much of the Netherlands’ gas pipeline network was built decades ago, to disperse gas from the giant Groningen field across the country, its high steel quality means it is already hydrogen-ready, according to Coenen. As such, most of the repurposing work is focused on adjusting or replacing valves, measuring and control equipment and compressors, rather than the pipelines themselves.

Storing hydrogen in salt caverns is the most promising solution, with the most suitable sites found in the northern Netherlands.

Once fully operational, the network will link largescale hydrogen production facilities and import terminals with major industrial clusters in the Netherlands as well as in Germany and Belgium. The national hydrogen network is part of an €8bn ($8.4bn) investment package that Gasunie is investing until 2030 in infrastructure for the energy transition.

Progress so far

In October 2023, Gasunie officially started construction of the network at the port of Rotterdam. This more than 30-km section is set to be operational in 2025, enabling Shell to flow up to 60,000 kg/day of green hydrogen from a 200-MW electrolyser it is building in the Tweede Maasvlakte industrial park of Rotterdam Port to its refinery in Pernis.

Other companies are expected to follow Shell in developing green hydrogen projects in Tweede Maasvlakte, supplied with up to 7.4 GW of offshore wind capacity set to be connected with Rotterdam port by the end of the decade. Eventually, the aim is to produce 100,000-180,000 t of green hydrogen annually in the area for use by industry and in the transport sector.

In an update in October 2024, Gasunie reported that Rotterdam and three other industrial clusters in the

HANS COENEN, EXECUTIVE BOARD MEMBER AT DUTCH

SYSTEM

GASUNIE

“To increase the affordability of hydrogen, the market will have to develop faster. Because with multiple producers and customers, volume and choice increases.”

Northern Netherlands, the North Sea Canal Area and the Southwest Netherlands are to be connected to the network before or in 2030, estimating that this schedule had 90% certainty.

However, the pace of development is dependent on various factors, including most notably permitting, according to Coenen. The government is working on legislation that should help fast-track the permitting process by giving hydrogen pipelines the same importance as natural gas pipelines.

Another uncertainty is how quickly demand for and supply of low-carbon hydrogen take shape. Gasunie has received €750mn in support from the Dutch government to help de-risk its investments in the network, in the event that pipelines put into operation initially flow only low volumes of hydrogen, meaning that it would take longer for Gasunie to recoup its expenses.

“To increase the affordability of hydrogen, the market will have to develop faster. Because with multiple producers and customers, volume and choice increases,” Coenen says. “This is expected to have a dampening effect on the price of hydrogen. In addition, legislation needs to match a level playing field for market players. Otherwise, the Dutch competitive position will suffer.”

Storage

In addition to the pipelines carrying hydrogen, Gasunie is also set to play an important role in developing import terminals and the storage facilities to support the system by balancing production and consumption.

“Large-scale underground hydrogen storage is hugely important for the security of supply of renewable energy,” Coenen says. “In the renewable energy system, you depend on an energy supply based on the production of

electricity by wind and sun. The demand for energy does not match the supply. That is why you need a buffer. By storing hydrogen on a large scale, you create such a buffer.”

Storing hydrogen in salt caverns is the most promising solution, with the most suitable sites found in the northern Netherlands. These caverns are impermeable, preventing the escape of gas, while rock salt serves as a malleable but very stable material. They also offer significant storage capacity, are relatively economical and allow the fast injection and withdrawal of hydrogen.

Gasunie’s subsidiary EnergyStock already uses six salt caverns in this area to store natural gas. A demonstration project carried out by another Gasunie unit HyStock and research institute TNO at Zuidwending in 202122 concluded that these sites were also ideally suited for hydrogen, in terms of technical integrity, geological containment, stability and safety.

Gasunie is working on plans to create four new salt caverns for hydrogen storage at the Zuidwending site with a combined capacity of 1 TWh. As the hydrogen market scales up, even more storage space will be needed, particularly given hydrogen’s low energy density compared with natural gas. Therefore, Gasunie is also involved in initiatives across the border in Lower Saxony, Germany, to store hydrogen in salt caverns.

On the import front, Gasunie has plans with Dutch infrastructure developer Vopak for a green ammonia terminal in Rotterdam, known as the ACE Terminal.

“With its dense nationwide network, storage and import facilities, hydrogen is ideally suited to make industry more sustainable and offers economic opportunities for the Netherlands as a key link in northwestern Europe,” Coenen says.

PERU: 47 AREAS WITH EXPLORATION POTENTIAL

Since our last promotion activities in 2023, we have achieved to sign 7 technical evaluation agreements, mainly in the offshore areas. This year we have decided to add 17 areas for the exploration activities in other basins such as Lima and Pisco in the offshore and Huallaga in the onshore.

This year we are promoting 47 areas that have been included in our promotion plan for 2024. These areas also have extensive technical information that will be available on the web, prior registration and free of charge for companies that are interested.

General numbers, we quantify more than 17,000 MMSTB in the different onshore and offshore basins and 9.5 TCF in the subandean basins. There is still a hydrocarbon potential that need to be developed.

Figure 1. 47 promotional areas in the 7 hydrocarbon basins located in the onshore and offshore areas.

Access to the Data Bank scanning the following QR code: Legend:

Promotion Areas Blocks in Peru Technical Evaluation Agreements

BIDDING PROCESS FOR PRODUCING BLOCKS I AND VI NEXT BIDDING PROCESS

The Bidding Round for Blocks I and VI has been announced.

These blocks, located in northwestern Peru among the provinces of Talara, Paita and Sechura in the region of Piura, are in the production stage and are highly attractive due to their accessibility, infrastructure and proximity to the modern Talara Refinery.

block z-69

It is also scheduled to launch the Bidding Round for Block Z-69. This block has an average production of 4,500 barrels per day of oil (API between 35 and 38) and 9 million cubic feet of gas per day, coming from reservoir mainly dominated by gas-in-solution drive mechanism. Block Z-69

HANS COENEN, EXECUTIVE BOARD MEMBER, GASUNIE

Block I Block VI

Figure 1

SnapLNG by T.EN™: Technip Energies’ plant of the future

Maxime Miloyan, Vice-President Gas & LNG Markets at Technip Energies presents SnapLNG by T.EN™, a standardised modular LNG solution already pre-engineered and available for the market. Maxime also provides insights on Technip Energies’ current positioning on the LNG market as well as its near-term evolution.

What distinguishes SnapLNG by T.EN™ as a liquefaction solution on the market?

Our SnapLNG by T.EN™ solution stands out in the market due to its advanced modular design, which offers significant advantages in terms of time-to-market, cost certainty and execution risk reduction. As our “Solution Zero” for low-carbon LNG, SnapLNG by T.EN™ integrates the latest technologies and equipment with full digitalisation, ensuring highly efficient and reliable plant operation and maintenance as well as low-carbon emissions.

And the optimised modularisation approach not only maximises activities at fabrication yards to minimise on-site activities, but also allows performing all the precommissioning and most of the commission activities before modules arrive at site.

How was this solution developed? Walk us through some of the key innovations that exist in this solution?

SnapLNG by T.EN™ was developed by harnessing Technip Energies’ extensive experience in LNG project execution, expertise in LNG technology and equipment, and deep knowledge in modularisation gained through years of delivery of mid-, large-scale and floating LNG facilities.

The key innovation lies in the combination of several technologies which, when assembled, result in

the LNG plant of the future. These include the use of electric motors to drive refrigerant compressors, the implementation of highly efficient processes, the selection of the most efficient equipment, and the possibility of setting up a carbon-capture unit for both native and anthropogenic CO2, all leading specifically to a significant reduction in CO2 emissions compared to conventional open-cycle gas turbine-driven solutions. As a result, when powered by renewable energy sources or a high-efficient combined-cycle gas turbine power plant, SnapLNG by T.EN™ can achieve zero-carbon emissions. Additionally, our product incorporates advanced digital tools that enhance operational performance and facilitate smooth and efficient project execution.

How does this solution minimise emissions?

When discussing emissions, it is important to distinguish the different types and sources of GHG.

SnapLNG by T.EN™ includes a leak detection system (LDAR) to ensure continuous monitoring of fugitive methane and other hydrocarbons and VOCs emissions within the plant boundaries.

With regards to CO2 emissions, the native CO2, contained in the feedstock can be captured after having been removed from the natural gas.

Regarding the CO2 emissions resulting from fuel gas usage, those are reduced to nil by using electric

MAXIME MILOYAN, VICEPRESIDENT GAS & LNG MARKETS AT TECHNIP ENERGIES

Snap LNG by T.ENTM A unique modular and standardised approach

SnapLNG by T.EN™ also enables companies to meet local regulatory requirements and to produce the low-carbon LNG expected from countries and utilities distribution companies. This fits with the global LNG trend to produce low-carbon LNG, particularly by developing electrified LNG plants. (as illustrated by the following chart.)

*Not all shown here. See our Technip Energies global LNG Reference Timeline.

motors instead of gas turbines to drive the refrigerant compressors and by replacing conventional heaters and boilers with electric ones.

It also is worth noting that SnapLNG by T.EN™ uses Honeywell former Air Products’ Dual-Mixed Refrigerant (AP-DMR) liquefaction process associated with air fan coolers equipped with tubes having internal and external enhanced surfaces.

These features minimise power requirements. When the plant operates on carbon-free power, SnapLNG by T.EN™ can avoid about 350 KT equivalent per year of CO2 emissions per 2.5 MTPA train.

Why is such a solution important in today’s energy market?

As the global demand for low-carbon energy sources continues to rise, our clients face the critical challenge of balancing energy security, environmental sustainability and economic viability. SnapLNG by T.EN™ meets this need by offering a reliable, low-carbon LNG production solution that can be deployed quickly and cost-effectively.

Our solution also enables companies to meet local regulatory requirements and to produce the low-carbon LNG expected from countries and utilities distribution companies. This aligns with the global LNG trend to

produce low-carbon LNG, particularly by developing electrified LNG plants, as illustrated by the following chart. By adopting SnapLNG by T.EN™, companies can confidently navigate the evolving regulatory landscape and contribute to the global effort to reduce carbon emissions in LNG production.

What are the main challenges facing companies like Technip Energies today in terms of ensuring timely and on-cost LNG project delivery?

Many LNG projects are expected to materialise during the coming years. This means the whole supply chain is currently under pressure involving human resources, material supply, fabrication yards, construction companies and so on. To overcome such challenges Technip Energies is continuously acting on different critical fronts, including identification of talent, development of an employee value proposition, expansion of human capital, and close interaction with all value chain stakeholders. This includes frame agreements with main suppliers, worldwide material sourcing leveraging our global procurement organisation, constant monitoring of fabrication yards and construction companies’ workload, performance and results.

Our SnapLNG by T.EN™ solution stands out in the market due to its advanced modular design, which offers significant advantages in terms of time-to-market, cost certainty and execution risk reduction.

Moreover, Technip Energies maintains a highly disciplined and selective approach to commit to projects for which all these challenges can be satisfactorily mitigated, delivering certainty to our clients.

What are some notable successes for the business in terms of awards/project completions?

Technip Energies has achieved several notable successes over the years reflecting leadership in the LNG sector and commitment to innovation. Key achievements include the successful delivery of some of the world’s largest LNG trains, demonstrating our capability to handle complex and frontier projects. We have pioneered the development of floating LNG production facilities by providing flexible and efficient solutions for offshore gas resources.

We also have delivered modular LNG plants in the challenging Arctic environment, showcasing our expertise in modularisation and project execution under extreme conditions. We believe the launch of SnapLNG by T.EN™ represents a significant milestone, offering a cutting-edge solution for low-carbon LNG production that can address the industry’s future challenges.

The last two LNG EPC projects awarded by Technip Energies reflect the growing trend of the LNG industry. These projects, for which basic design preceded the market entry of SnapLNG by T.EN™, include features which are an integral part of the SnapLNG by T.EN™ design, such as plants fed by decarbonised electricity, electrical motors to drive refrigerant compressors, mixedrefrigerant liquefaction process and the use of air fan coolers for heat sink.

and OQ’s low-carbon

TotalEnergies

Marsa LNG plant in Oman

MAXIME MILOYAN, VICE-PRESIDENT GAS & LNG MARKETS AT TECHNIP ENERGIES

© Technip Energies

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