Paul Everingham, Chief Executive Officer, Asia Natural Gas & Energy Association (ANGEA), sheds light on how carbon capture and storage (CCS) could reshape Asia's energy landscape and facilitate emissions reductions in gas usage.
In the context of Asia's diverse energy needs and the net zero transition, how does ANGEA envision the transformative role of natural gas and liquefied natural gas (LNG)? How will carbon capture and storage (CCS) technologies serve as a linchpin in this transformation?
ANGEA views natural gas and LNG as being absolutely critical to both energy security and the energy transition in Asia. There are a range of countries in Asia where gas already plays a significant role in electricity generation. These include Singapore, where nearly all electricity is sourced from gas, as well as Japan, South Korea, and Thailand.
There are also countries that are currently reliant on coal for much of their power, but hope to switch to gas. Vietnam and Indonesia are two prime examples, with the Philippines also moving down that pathway. Notably, Asia is home to the world's two most populous countries, India and China, both of which are growing gas use in their energy portfolios.
The reasons countries in Asia seek to use natural gas are similar: it helps meet rising energy demand; it produces far less CO2 than coal in electricity generation; and it's the perfect partner for growing investment in renewable energy on the road to net zero. The development and widespread implementation of CCS will help the world use gas more responsibly and facilitate important emissions reductions across the gas and LNG supply chains, spanning production, transport, and consumption.
The ability of CCS technology to capture more than 90 percent of CO2 emissions will be vital to decarbonising gas-fired electricity generation and enabling Asia's large and hard-to-abate industrial clusters to tackle emissions at their source. Additionally, CCS value chains will open opportunities for new and spin-off industries throughout the region. We are seeing early signs of that in countries like Malaysia and Indonesia, through the work they are doing to establish CCS hubs.
Singapore occupies a central role in Asia's energy scene. From ANGEA's perspective, how does the association foresee Singapore's enduring significance in guiding Asia towards a sustainable energy future?
Singapore has served as a trading hub for centuries and established itself as a global energy hub for decades. ANGEA envisions this role for Singapore continuing for a long time to come, with the country having a pivotal role in both the global energy transition and Asia’s progress towards a sustainable energy future. The only aspect that will change over time is the evolving mix of energy sources involved.
In the longer term, as global energy use patterns shift, it is likely that Singapore's role in oil trading and oil refining will eventually diminish. On the other hand, Singapore has made significant inroads into developing itself as an LNG hub. So we can anticipate increased LNG trade through the port in the coming decades. Developing such a hub is a complex endeavour, but if there is a place in Asia well-positioned to succeed, it is Singapore. I expect the petrochemicals industry to remain highly relevant. There is also an opportunity for Singapore to become a hub for an integrated ASEAN Power Grid.
Singapore's own strategic planning provides insights into how the mix of energy trading through the port might evolve. The Singapore Government has been quite open about its future plans for using hydrogen in electricity generation, so that’s one commodity we can certainly expect to see coming through Singapore. Similarly, the Maritime and Port Authority of Singapore has big ambitions for ammonia as a low-carbon fuel for the shipping industry.
I also believe Singapore will play a central role in CCS activities in Southeast Asia. While Singapore may lack CO2 storage space, it is definitely going to engage in the capture business and will support the establishment of CCS hubs in countries like Indonesia, Malaysia and Thailand.
What are your thoughts on the SIEW 2023 theme, "Energy Transition Towards A Net Zero World"?
The theme for SIEW 2023 is an excellent choice. It reflects not only the core purpose of ANGEA, but also what countries and industries across Asia and around the world are working towards. Everybody wants to see net zero achieved in a timely fashion as the best outcome for the health of our planet. But a really key word in that equation—and one that is sometimes underappreciated—is "transition".
The energy transition is an ongoing process of incremental changes and improvements. It is neither realistic nor helpful to assume that we can instantaneously shift to a net zero state with the snap of our fingers. Perhaps the world in the future will be in a position where renewable energy powers everything continuously, but we are not yet at that stage.
In the meantime, natural gas and LNG will continue to be of paramount importance as a significantly lower-emissions alternative to coal and as reliable energy sources that naturally complement the growing adoption of renewables. Gas and LNG will play a foundational role in advancing low-carbon fuels such as hydrogen and ammonia, as well as CCS—a technology essential for the world to achieve net zero.
To me, this is really what the energy transition is all about—a gradual process in which trusted energy sources and their applications adapt and evolve over decades rather than abruptly being discarded.
About Paul Everingham, Chief Executive Officer, Asia Natural Gas & Energy Association (ANGEA):
Paul Everingham joined ANGEA as its inaugural CEO in September 2022, after a four-year stint as Chief Executive of the Chamber of Minerals and Energy of Western Australia (CMEWA). Western Australia is the world's premier resource province providing many essential minerals for economic growth and development.
Mr Everingham has a long track record of working collaboratively and successfully with a wide range of stakeholders, including government, industry, and also with local communities. He has a passion for advocacy that achieves practical outcomes for all stakeholders and is skilled in communications, marketing and brand awareness.
With an in-depth knowledge of the global natural gas and energy landscape, he has worked alongside some of the world's largest and most sophisticated energy operations in Australia and Asia. Mr Everingham led the Western Australia mining and energy sector through the tumultuous COVID-19 pandemic. He also has a thorough understanding of the significant economic opportunities and accompanying sustainability challenges that are facing industries and communities across the globe.
Prior to joining CME, Mr Everingham founded and led his own lobbying firm and worked for an extended period in the Australian Federal Government, including roles with the Federal Treasury and the Federal Minister for Finance.