Oil and gas companies are leading deployment of a key emissions reduction tool in the Asia Pacific region, according to a top analyst who says countries must provide incentives and regulatory frameworks to stimulate investment in carbon capture, utilisation and technology (CCUS).
S&P Global Commodity Insights Executive Director, Asia Pacific Upstream, Antonio Dimabuyu today told the APPEA 2023 Conference and Exhibition that the sector was uniquely placed to enable CCUS, which has been recognised by the International Energy Agency (IEA) and Intergovernmental Panel on Climate Change (IPCC) as a tool required to get to net zero by 2050.
"Oil and gas companies lead CCUS deployment activity in APAC as they leverage technical capabilities, major capital project execution experience, ability to manage risk over long business cycles, and commercial market making skills gained from hydrocarbon development," he said.
Mr Dimabuyu told delegates in Adelaide that development of regional CCUS hubs was the next stage for the APAC region as was occurring in Europe. But he said cost remained the main barrier.
"Cost reduction efforts through better project management, collaboration to established shared facilities and utilising technology would be enablers," he said. "Countries would also be required to provide incentives and strengthen regulatory and legal framework to stimulate CCS."
The S&P Global presentation was one of several CCUS papers presented this afternoon, including by Santos about Australia's next major storage project, Moomba, a joint venture with Beach Energy.
It comes after the Australian Petroleum Production & Exploration Association (APPEA) has called for a national CCUS road map to provide policy direction and incentivise investment, progress carbon management hubs and promote Australia as a regional storage leader.
APPEA yesterday released an interim study of Net Zero Zones - nine regional industrial and manufacturing hubs around Australia based on shared infrastructure including CCUS technology, renewables and natural gas aimed at accelerating decarbonisation and attracting investment.
APPEA Chief Executive Samantha McCulloch said Mr Dimabuyu's presentation highlighted the importance of the natural gas industry's expertise in a cleaner energy future.
"The world needs technologies like CCUS to get to net zero and it is industries like ours that can enable that - using our skills and infrastructure to progress these projects," she said.
"The global CCUS race is on and the US and Europe are announcing major programs worth billions to incentivise projects. Australia needs to seize the economic and emissions reduction benefits.
"Developing Net Zero Zones can help facilitate this journey, enabling new investment into industrial hubs with shared energy and emissions reduction infrastructure."
