Earlier this year, leading US LNG exporter Cheniere Energy announced it would begin including a ’Cargo Emissions Tag’ with each shipment beginning in 2022 – a response to a growing number of LNG buyers that are not only comparing price, but also environmental impact
This is just another example of the growing emphasis countries and industries are placing on reducing energy-related greenhouse gas emissions in the global clean energy transition to combat climate change, and meet the goals set out in the Paris Agreement. While the transition is influencing all industries – from carmakers doubling down on electric to investors putting environmental, social, and governance (ESG) as a criterion for their portfolio – it most significantly impacts the oil and gas industry.
Oil and gas companies are placing a huge bet on the energy transition including renewable energy, massive infrastructure investments such as gas terminals and pipelines, as well as the emergence of LNG and hydrogen technology.
The production and transmission process for LNG sets the stage for the future widespread transmission of hydrogen, seen as a cleaner future fuel that will underpin the global clean energy transition.
Yet the challenge with LNG and hydrogen production in the value chain is significantly more complex, and it requires building new facilities for converting the gas into liquid form and new receiving facilities to regasify it. This liquefaction and regasifying process requires energy, which generates emissions, complicating the equation to measure the carbon cost.
To help oil, gas and energy companies address the complexities of the business processes and achieve greater transparency in carbon emissions tracking, two leading IT companies, IBM and SAP, are teaming up.
The objective of this partnership is to provide a holistic offering, encompassing the latest technology such as SAP´s Intelligent Suite and know-how to support oil, gas and energy companies in their digital transformation. Working in partnership, the two IT companies plan to create a platform that will help oil and gas companies derisk projects and deployment times, reduce project costs, facilitate handover and commissioning, and drive efficiencies in operations and maintenance costs.
SAP global vice president for the oil, gas and energy industry Benjamin Beberness considers this an important step to foster industry´s transition. “Oil, gas and energy companies are placing a huge bet on the energy transition including renewable energy, massive infrastructure investments such as gas terminals and pipelines as well as the emergence of hydrogen technology,” said Mr Beberness. “Operating these businesses requires a safe but equally efficient and innovative process design. Partnering with IBM assures global reach and highly skilled resources to provide the process backbone of these businesses.”
IBM vice president for chemicals and petroleum and global industrial SAP leader Zahid Habib considers LNG and hydrogen as essential components of the energy transition strategy by oil, gas and energy companies requiring significant capital investment and infrastructure development. He said “IBM and SAP’s partnership combines all essential elements of digital transformation platforms and intelligent processes for secure and efficient construction and operation of these assets.
With cleaner, cheaper and more efficient solutions, we aren’t just helping oil and gas companies reduce emissions, we’re taking important steps in our society’s collective movement to a cleaner future.”
Riviera Maritime Media will provide free technical and operational webinars in 2021. Sign up to attend on our events page