By DayakDaily Team
KUCHING, June 28: The Kasawari gas field in Central Luconia, off Sarawak in Malaysia, with a capacity of 3.7 million tonnes per annum (MTPA) of carbon dioxide (CO2), is featured in the 15th annual World LNG Report 2024 as a significant LNG-linked carbon capture, utilisation, and storage (CCUS) project.
According to a media release, this initiative includes a carbon capture facility that sources CO2 from upstream or liquefaction components of LNG projects, enhancing emissions mitigation efforts.
The International Gas Union (IGU) released its 15th annual World LNG Report 2024, the world’s most comprehensive public source of information on key developments and trends in the liquefied natural gas (LNG) market.
Highlighting critical information on LNG supply and demand dynamics globally and in the wider Asia Pacific region, the report emphasises Malaysia’s specific role.
The report underscores LNG’s growing importance in the global energy system due to its flexibility, efficiency, and reliability. As stakeholders prioritise decarbonisation of the LNG value chain, it noted that numerous projects are innovatively integrating renewable electricity, carbon capture and storage (CCS), and advancing technologies like e-methane and bio-LNG (liquefied biomethane), which is produced from capturing and upgrading biogas that would have otherwise been emitted from landfills, agricultural waste, or other feedstock.
Globally, Malaysia stands out with one of the largest operational liquefaction capacities at 32 MTPA among 21 markets with LNG export facilities.
It retains its position as the fifth-largest LNG exporter after Russia, Qatar, Australia, and the United States.
In 2023, Malaysia exported 26.75 million tonnes of LNG, comprising about 7 per cent of global LNG trade.
IGU president Li Yalan emphasised in the report, “As the world moves toward a low emissions future, nations are seeking ways to achieve their climate commitments while keeping energy affordable, available and secure. LNG is a tool that will be critical to providing greater resiliency for rapidly changing energy systems around the world and it will have an essential role in mitigating the inherent risk of uncertainty through that process.”
Malaysian Gas Association (MGA), as the voice of the Malaysian gas industry, recognises the LNG’s pivotal role in the nation’s energy security, especially in the nation’s energy transition roadmap.
MGA president Abdul Aziz Othman stated that the report comes at a critical time when global energy security is paramount, noting that the ongoing energy crisis has highlighted the need for nations to diversify their energy sources and ensure a stable and reliable supply.
“This information will be crucial for policymakers and industry stakeholders as they work towards ensuring a stable and sustainable energy future for the region and Malaysia in particular,” he said.
Anticipating a rise in gas demand from 43 per cent to 56 per cent by 2050, MGA stresses the need for industry to be fully prepared to meet heightened expectations, including sufficient gas availability, robust infrastructure, and supportive policies to attract investments and foster market growth.
While Malaysia faces declining domestic gas production, Abdul Aziz however sees potential in welcoming more LNG players to bolster gas supply security.
He advocates for clear policy frameworks and actions to ensure reliable gas supply and supports the government’s push for a fully liberalised gas market, believing it will enhance energy security and market efficiency for Malaysian consumers. — DayakDaily
