Charting a Path to Low-Carbon Leadership in the GCC: Unlocking up to 90% Emissions Reductions in Greenfield LNG

Abstract The LNG industry stands at the cusp of a transformation driven by the climate imperative. Focusing on an innovative low emission industrial hub in Northern Australia, this paper shows how CO2 emissions can be reduced in a world-class LNG asset by strategic master planning, colocation of industrial facilities and taking a marginal cost approach to assessment, screening, and implementation of existing and new decarbonisation technologies. We propose: A new breed of electrified LNG processing facilities that could deliver a ~90% reduction in Scope 1 and 2 CO2 equivalent intensity with sufficient renewable firmed imported power – given that gas Driven emissions constitute ~78%-93% of Scope 1 and 2 CO2 equivalent emissions on a sample of current practice LNG facilities. Leveraging partnerships in upstream renewable power, hydrogen supply and enabled downstream carbon capture and storage (CCS) technologies, we outline how we can de-risk assets from economic and regulatory uncertainty by providing alternative pathways to sustaining emissions reduction. A strategic methodology to screen and implement ‘avoid and mitigate’ options first, focusing on those opportunities the offer the most cost-effective emissions reduction opportunities. Phase 1 – Establish a Baseline Emissions Profile: At a conceptual level, estimate all emissions sources from energy usage to fugitive to flaring emissions in line with the relevant carbon accounting standards. Understand the largest emissions sources and their drivers.Phase 2: Identify & Prioritise Emission Reduction Opportunities: Apply existing and innovative technologies to uncover opportunities for GHG emission reductions. Identify the GHG reduction potential and the lifecycle costs of implementation of such opportunities.Phase 3: Select Initiatives and Develop Emissions Reduction Roadmap: Plot all emissions reduction opportunities on a Marginal Abatement Cost Curve (MACC) that clearly shows the lowest to highest marginal abatement costs for each opportunity. Understand non-cost risks of each opportunity which may be technology readiness or third-party risks and then select the opportunities for more detailed assessment that align to your businesses strategic GHG reductions roadmap and risk appetite. A deeper analysis into an industrial Precinct Case study in Northern Australia (Middle Arm) and how key attributes are comparable with Gulf countries.