The EIC’s Khairun Suffia Points to a “Recalibration” of APAC’s Oil and Gas Sector
Oil and gas field development, decommissioning, renewables and carbon capture and storage are set to provide project logistics with a steady stream of cargo-carrying opportunities in the coming years, says the EIC’s Khairun Suffia, market intelligence analyst for the Energy Industries Council (EIC), a Breakbulk events global knowledge partner.
From Issue 3, 2024 of Breakbulk Magazine.
The Asia-Pacific energy landscape is experiencing a pivotal transformation, marked by a nuanced shift in the oil and gas sector. While exploration activities are anticipated to decelerate over the next five years, the momentum is building in field development efforts, highlighted by an uptick in the number of forthcoming final investment decisions (FIDs).
This evolution signals a strategic move from seeking new reserves to enhancing the productivity of existing fields. However, the significant bidding rounds witnessed in countries like Malaysia, India, Indonesia and Australia indicate a revival in exploration efforts, suggesting a strategic recalibration rather than a full-scale retreat from discovery initiatives.
Decommissioning, especially in Australia, is emerging as a significant area of focus. With most offshore assets over 30 years old and poised for decommissioning, there’s a unique opportunity to repurpose these areas for renewable energy projects, particularly within the proposed renewable energy zones by 2025.
In the midstream sector, the shift toward gas-fired power plants and the consequent emphasis on LNG regasification capacity investment reflect the region’s transition to cleaner energy sources. Vietnam’s leadership in capex spending for midstream projects highlights the strategic investments being made to facilitate this transition.
The renewables and energy transition narrative is particularly compelling with a marked increase in project announcements and investments outpacing those in traditional energy sectors. Australia, India and China are at the forefront of this transition, driven by decarbonization targets and energy security concerns.
The corporate power purchase agreement (PPA) market’s growth, led by China, India and Taiwan, alongside significant investments in renewable energy, underscores the private sector’s role in this transformation.
The growing interest in hydrogen as a clean energy source, with significant projects being explored across Southeast Asia, alongside the focus on carbon capture technologies, points to a multifaceted approach to the energy transition. The leadership of upstream and LNG players in carbon capture initiatives further exemplifies the oil and gas industry’s critical role in shaping a sustainable energy future for the Asia-Pacific region.
For 80 years the EIC has helped companies maximize business opportunities in the energy industries, whether sourcing or supplying goods and services, at home or abroad.
TOP PHOTO: AAL transports reclaimer components in western Australia. CREDIT: AAL
