Analysing the carbon intensity of Australian LNG and implications on its role in Asia’s energy transition
Steffi Teo A * and Varun Narayan BA
B
Steffi Teo is an Emissions Insight Analyst at the Centre of Emissions Excellence within S&P Global Commodity Insights (SPGCI). Based in Singapore, she leads APAC market engagement for the Centre and focuses on analysing regulatory and policy developments regarding emissions and how these will drive global commodity markers to transact on carbon. Prior to joining SPGCI, Steffi was an Account Director at Brunswick Group, where she advised FTSE100 companies on investor engagement and reputational risk management, with experience in ESG and regulatory issues in the energy and resources sector. She began her career in the Singapore civil service, where she was a government translator and concurrently managed external relations for senior leaders in the Prime Minister’s Office. |
Varun Narayan is an Emissions Technical Analyst at the Centre of Emissions Excellence within S&P Global Commodity Insights (SPGCI). Based in Gurgaon, India, Varun is involved in quantifying emissions across the entire supply chain for a diverse range of commodities. Previously, Varun honed his skills modelling and forecasting power and gas market fundamentals within the dynamic South Asian electricity markets. This experience provided him with a deep understanding of how different electricity generation technologies contribute to overall emissions. Varun further possesses extensive knowledge of various greenhouse gas mitigation techniques employed in coal and gas dominant markets and can analyse the economic impact of these techniques on the electricity system. Varun’s passion lies in exploring new-age technologies that can significantly reduce both direct and fugitive emissions. |
Abstract
With the energy transition underway, it is imperative for producers to develop a comprehensive understanding of the emissions landscape and viable abatement opportunities within the Australian liquefied natural gas (LNG) value chain to navigate both environmental responsibilities and market competitiveness. By leveraging S&P Global Commodity Insights’ emissions datasets, this paper will examine existing Australian LNG projects and provide insight on how well-to-tank emissions characteristics vary depending on the carbon intensity profile of the source, before evaluating how and where producers should strategically invest in emissions abatement to effectively decarbonise production. This paper will also examine how market and policy trends may impact cost considerations and the extent of carbon exposure faced by producers, before discussing the carbon competitiveness of Australian LNG relative to counterparts in the regional energy transition.
Keywords: carbon exposure, carbon intensity, decarbonisation, emissions reduction, energy transition, low-carbon LNG, shipping emissions, upstream.
Steffi Teo is an Emissions Insight Analyst at the Centre of Emissions Excellence within S&P Global Commodity Insights (SPGCI). Based in Singapore, she leads APAC market engagement for the Centre and focuses on analysing regulatory and policy developments regarding emissions and how these will drive global commodity markers to transact on carbon. Prior to joining SPGCI, Steffi was an Account Director at Brunswick Group, where she advised FTSE100 companies on investor engagement and reputational risk management, with experience in ESG and regulatory issues in the energy and resources sector. She began her career in the Singapore civil service, where she was a government translator and concurrently managed external relations for senior leaders in the Prime Minister’s Office. |
Varun Narayan is an Emissions Technical Analyst at the Centre of Emissions Excellence within S&P Global Commodity Insights (SPGCI). Based in Gurgaon, India, Varun is involved in quantifying emissions across the entire supply chain for a diverse range of commodities. Previously, Varun honed his skills modelling and forecasting power and gas market fundamentals within the dynamic South Asian electricity markets. This experience provided him with a deep understanding of how different electricity generation technologies contribute to overall emissions. Varun further possesses extensive knowledge of various greenhouse gas mitigation techniques employed in coal and gas dominant markets and can analyse the economic impact of these techniques on the electricity system. Varun’s passion lies in exploring new-age technologies that can significantly reduce both direct and fugitive emissions. |
