Scope for EU–Japan cooperation in decarbonising the global LNG market
DOI:
https://doi.org/10.26485/SPE/2022/124/7Keywords:
LNG, international trade, decarbonisationAbstract
Background: Global climate ambitions seem to be at odds with the future use of natural gas. However, the inability to fully electrify the demand for energy has forced developed economies to seek ways to decarbonise the gas industry. This article investigates the option to further use LNG terminals as a source of carbon-neutral energy supply for the EU and Japan, which together account for 50% of the global demand for LNG.
Research purpose: The aim of this paper is to verify the potential pathways toward continued utilisation of the EU and Japanese LNG infrastructure in a low-carbon or even climate-neutral future.
Methods: A literature review of different technologies that enable CO2-neutral gas production or imports is conducted to identify potential pathways for decarbonisation. A SWOT analysis of the two selected scenarios is then performed to present their upsides and downsides and to identify potential areas for cooperation. Finally, the costs associated with the two development paths are analysed to verify where the main challenges lie.
Conclusions: The study confirms that the success of gas conversion facilities will rely heavily on technological advancements that would reduce the unit cost of natural gas processing. By contrast, biomethane imports will require operational support to effectively compete with other energy carriers. The author concludes that both gas decarbonisation scenarios analysed may well prove to be complementary. However, access to financing will likely pose a major challenge to the future utilisation of the existing LNG infrastructure
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