Earlier this year, Cheniere Energy, a leading US-based exporter of LNG announced it would begin including a ‘Cargo Emissions Tag’ with each shipment beginning in 2022. The move is in response to a growing number of countries that are not only comparing LNG imports on price, but also on the environmental cost.
This is just another example of the growing emphasis countries and industries are placing on reducing energy-related greenhouse gas emissions – a shift known as energy transition. While the transition is influencing all industries – from automakers doubling down on electric vehicles (EVs) 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 energy transition including renewable energy, massive infrastructure investments such as gas terminals and pipelines, as well as the emergence of LNG and hydrogen technology.
Operating these businesses requires a safe but equally efficient and innovative process design.
LNG is a clean energy alternative and is playing an increasingly important role in helping nations improve air quality and lower greenhouse gas emissions. LNG is also easier to transport; when natural gas is cooled into a liquid, its volume becomes 600 times smaller. Transporting it in this state is a big advantage because you can fit six times the product into the same space, reducing the carbon required to travel from point A to B. Further, the production and transmission process for LNG sets the stage for the future widespread transmission of hydrogen, an even cleaner form of energy.
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 require 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, 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 as well as expert skills and best-in-class processes to support oil, gas and energy companies in their digital transformation journey. IBM assures global reach and highly skilled resources to provide the process backbone of the businesses. A platform that will help oil and gas companies dramatically de-risk projects and deployment times, as well as yield project savings, smoother handover and commissioning, as well as drive efficiencies in operations and maintenance costs.
Benjamin Beberness, SAP´s Global Vice President for the Oil, Gas, and Energy Industry Business Unit, considers this an important step to foster the industry´s transition: “Oil, gas, and energy companies are placing a huge bet on energy transition including renewable energy, massive infrastructure investments such as gas terminals and pipelines as well as the emergence of hydrogen technology. 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.”
Zahid Habib, IBM’s Vice President for Chemicals & Petroleum and Global Industrial SAP Leader 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. IBM and SAP’s partnership combines all essential elements of digital transformation platforms and intelligent processes for secure and efficient construction/operation of these assets.
With cleaner, cheaper, and more efficient solutions, it is not just oil, gas and energy companies that are being helped to reduce emissions, important steps are also being taken in society’s collective movement to a cleaner future.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/21052021/tech-companies-unite-technologies-into-one-solution/
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