Integrated approach to natural gas utilization in the Asia Pacific region

The rapidly expanding economies in the Pacific Rim have placed increasing demands upon indigenous natural gas supplies in South East Asia and Australia. Competing demands include exports of liquefied natural gas (LNG), domestic consumption, and potential use for enhanced oil recovery (EOR) to extend the useful life of maturing oil fields. An additional competing demand for gas exports may emerge as the interstate pipeline grid is expanded. An integrated approach incorporating the evolving nature of gas demands and discrete physical supplies would provide a means to mitigate against potential mismatching of supply and demand. The consideration of the evolving nature of gas demands could promote economically beneficial changes to gas field development. The development of high carbon dioxide (CO2) content gas fields has been slowed by the lack of a market for CO2. Utilization of by-product CO2 for EOR could improve development economics, thus facilitating earlier development of gas supplies to satisfy gas demands including domestic use and LNG exports. End users would also benefit from the assurance that gas supplies would become available as needed. The maturity and increasingly complex natural gas industry in the Asia Pacific Region has led to a qualitative change. The model of single projects to satisfy single markets is no longer valid. The current environment is more dynamic, creating the need to anticipate changes to market demands and to find value-added markets for by-products. The integrated approach to gas utilization discussed in this paper presents a new model more appropriate to the gas industry existing today in the Asia Pacific Region. This approach is particularly significant to widely discussed proposals for an Asia Pacific energy grid extending to Australia