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The panel addressed the role of gas in the energy transition. (Image source: AIEN International Energy Summit)

Exploration & Production

A panel session at the AIEN International Energy Summit in Bangkok, Thailand, focused on the role of gas in the energy transition, looking at how natural gas, particularly LNG, impacts the security, affordability and sustainability of a robust energy future

Moderator Edward Taylor, partner, A&O Shearman asked the question, is natural gas still relevant to the energy evolution?

Andrew Kirk, vice president Origination, LNG, B Grimm said it will continue to play a big role. “The issue with renewables capacity and their intermittent nature means we will continue to need natural gas. New technologies such as batteries are still a long way off from being able to supply a full grid load. Renewables are also geographically bespoke and not available to all. They can provide solutions in areas with limited demand but the cost to run a city like Bangkok is so problematic. Many countries will not be able to cope with the cost increase of moving straight to renewables.”

Steve Morrell, senior vice president, ExxonMobil PNG LNG, agreed. “The conversation about gas has never been more pertinent. Whether we are talking about emissions, the war in Ukraine, or living standards around the world – gas has its part to play. There are also so many conversations about the rise of Artificial Intelligence. But where is the power coming from to feed these data centres that will play such a large part?"

Accelerating the energy transition

“Gas can accelerate the energy transition today. We can stop coal today. We can fill the gaps in intermittent renewables today. So, what is holding us back?”

“We are far enough along the energy transition to separate the aspirational and the unachievable,” said Kirk. “We are hearing these ideological positions where gas is considered unnecessary without having a sensible conversation about alternatives. Moving straight to renewables will create very unstable energy grids that will stifle economic growth.”

With the global population set to grow by 2bn by 2050, Morrell believes the responsibility will grow even higher on the energy companies to provide affordable, reliable and sustainable energy, and natural gas will play a large role in this.

“Gas is well understood and relatively cleaner compared with coal. The infrastructure is there and expanding. There is a lot to be said for the marriage between gas and intermittent renewables. Moving from a well-known system to new technology – it isn’t going to happen overnight. We could put more gas into the system. This will help see a 60% reduction in emissions if we replace coal, without even using new technologies.”

“One of the main problems is how to fill the gaps from renewables,” Kirk concluded. “The answer is gas. The stage is set for a reasoned conversation about gas.”

70% of the Ruwais LNG production capacity is already committed. (Image source: Adobe Stock)

Industry

bp, Mitsui & Co., Shell and TotalEnergies are to take a 10% equity stake each in ADNOC’s Ruwais LNG project

ADNOC will retain a 60% majority stake and serve as lead developer and operator of the project, which consists of two 4.8mtpa LNG liquefaction trains with a total capacity of 9.6mtpa. The first LNG export facility in the MENA region to be powered by renewable energy, it will be one of the world’s lowest carbon-intensive LNG facilities and is set to more than double ADNOC’s UAE LNG production capacity to around 15mtpa, as the company builds its international LNG portfolio.

ADNOC has awarded an engineering, procurement and construction (EPC) contract worth around US$5.5bn to a Technip-led joint venture and is set to commence start construction shortly, with LNG deliveries expected to start in 2028. ADNOC has signed several new long-term LNG sales commitments with international partners, including for the delivery of 1 million tonnes per annum (mtpa) with Shell and 0.6mtpa with Mitusi & Co., taking the committed Ruwais LNG production capacity to 70%.

Building on long-standing partnerships

Murray Auchincloss, bp CEO, said, “bp is proud to be joining ADNOC in its plans for Ruwais LNG, deepening our long-standing strategic partnership. This is a further example of our investment in gas growth in the Middle East as we continue to strengthen our LNG business globally.”

Wael Sawan, Shell CEO, said, “We are delighted to build on our long-standing partnership with ADNOC through the Ruwais LNG project. In line with our strategy to create more value with less emissions, we are investing in additional LNG capacity and further growing our world-leading LNG portfolio, with energy-efficient and carbon-competitive projects."

Patrick Pouyanné, chairman and CEO of TotalEnergies, said, “Last year at COP28, TotalEnergies and ADNOC both committed to lead the Oil & Gas Decarbonization Charter to reduce the industry’s greenhouse gas emissions. With Ruwais LNG, we are putting this principle into practice with one of the world’s lowest-carbon intensity LNG plants, allowing natural gas to fully play its role of transitional fuel.”

The new process will improve efficiency and reduce carbon footprint. (Image source: Honeywell)

Petrochemicals

Honeywell has launched a new process to improve the efficiency and sustainability of light olefin production

The naphtha to ethane and propane (NEP) technology generates a tunable amount of ethane and propane from naphtha and/or LPG feedstocks, generating more high-value ethylene and propylene with reduced production of lower-value by-products compared to a traditional mixed-feed steam cracking unit and resulting in net cash margin increases. An NEP-based olefins complex also reduces CO2 intensity per metric ton of light olefins produced by 5 to 50% versus a traditional mixed-feed steam cracker.

More efficient production

“The petrochemical industry faces strong competition and challenges in obtaining raw materials globally,” said Matt Spalding, vice president and general manager of Honeywell Energy and Sustainability Solutions in MENA. “Our technology helps to enable more efficient production of ethylene and propylene, two chemicals which are in high demand, while also helping our customers lower their carbon emissions.”

The new solution is a part of Honeywell’s Integrated Olefin Suite technology portfolio to enhance the production of light olefins.

Fishbones' stimulation technology has shown positive results. (Image source: Fishbones)

Technology

Stavanger-headquartered Fishbones has signed contracts for its reservoir stimulation technologies with two major national Middle East operators, together valued at more than US$15mn

They follow a series of successful Fishbones stimulation projects across the Middle East in recent years which have shown positive results, in some cases increasing production many times over.

Fishbones’ unique approach to reservoir stimulation connects the well and the reservoir through an open hole liner completion, with drilling and jetting technologies that create numerous lateral connections and increase well productivity and efficiency.

Under the new contracts, both Fishbones Jetting and Fishbones Drilling technology will be utilised in offshore and onshore wells in key locations in the region.

Wissam Chehabi, Fishbones’ managing director for the Middle East, said, “We are very satisfied with finalising these agreements with major operators in the region, giving us many opportunities to put our groundbreaking technology to use. We look forward to being part of our clients’ field development projects and to improve the productivity and efficiency of their wells.”

“Fishbones has extensive experience in targeting low permeability or naturally fractured reservoirs often found in the Middle East. We are excited to take on new challenges and deliver the pinpointed stimulation that only Fishbones technology can provide.”

Fishbones is looking forward to further Middle East expansion following the establishment of a Middle East sales and support office in Abu Dhabi 20 months ago, with plans including the establishment of local manufacturing facilities to serve Middle East installations.

More than 175 people, including senior representatives of the region's leading oil and gas companies, attended a very topical and engaging live webinar hosted by Oil Review Middle East entitled “Beyond Boundaries: Advanced Surveillance for Oil and Gas Remote Facilities”

The agreement signing. (Image source: ADNOC)

Energy Transition

ADNOC has signed a general agreement with the Japan Bank for International Cooperation (JBIC) for a US$3bn (AED11bn) green financing facility, to support its decarbonisation and energy transition initiatives

The credit facility is part of JBIC’s Global Action for Reconciling Economic Growth and Environmental preservation (GREEN) lending program and is partially supported by Japanese commercial banks.

Khaled Al Zaabi, ADNOC Group chief financial officer, said, “We are very pleased to once again partner with JBIC on ADNOC’s first green funding to accelerate our decarbonisation and energy transition initiatives. Proceeds of this credit facility will enable ADNOC’s strategy to support a just, orderly and equitable global energy transition. The agreement also marks the next milestone in the long-standing strategic energy relationship between the UAE and Japan.”

ADNOC is investing US$23bn (AED84.4bn) to decarbonise its operations and drive forward the growth of future energies, including hydrogen, geothermal, renewables and carbon capture technologies. ADNOC aims to achieve net zero by 2045 and zero methane emissions by 2030.

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