Reflections from APPEC 2024, Singapore
The APPEC 2024 conference centred on three key themes: energy security, affordability, and decarbonization.
Sustainable energy security was highlighted as the overarching theme of APPEC 2024, emphasizing the need for a balanced approach to meeting energy needs while achieving long-term sustainability goals
Downward Revision of Oil Demand
Global oil demand forecasts have been downgraded due to weak demand signals from China and economic uncertainties. The International Energy Agency (IEA) reduced its 2024 global oil demand growth projection to 910,000 barrels per day (b/d), down from 970,000 b/d in August 2024.
Renewables Expansion
The role of renewables in the energy mix is growing, driven by international and corporate pledges. Despite this growth, renewables face challenges related to the security and reliability of supply, particularly for manufacturing sectors.
China’s Refining Overcapacity
China is grappling with overcapacity in refining and downstream chemicals, which is likely to continue suppressing global market prices through an oversupply of Chinese products.
Downward Revision of Oil Demand
Global oil demand forecasts have been downgraded due to weak demand signals from China and economic uncertainties. The International Energy Agency (IEA) reduced its 2024 global oil demand growth projection to 910,000 barrels per day (b/d), down from 970,000 b/d in August 2024.
Renewables Expansion
The role of renewables in the energy mix is growing, driven by international and corporate pledges. Despite this growth, renewables face challenges related to the security and reliability of supply, particularly for manufacturing sectors.
China’s Refining Overcapacity
China is grappling with overcapacity in refining and downstream chemicals, which is likely to continue suppressing global market prices through an oversupply of Chinese products.
Significance of LNG
Liquefied Natural Gas (LNG) is emerging as a crucial transition fuel, addressing energy security, affordability, and decarbonization. With increased LNG capacities, particularly from Qatar, prices are expected to stabilize, and LNG’s lower carbon footprint is likely to boost its consumption.
LNG in Transportation
The transportation sector is increasingly adopting LNG-powered trucks. Additionally, the shipping industry is building more dual-fuel vessels that use combinations of bunker fuel with LNG or methanol.
Significance of LNG
Liquefied Natural Gas (LNG) is emerging as a crucial transition fuel, addressing energy security, affordability, and decarbonization. With increased LNG capacities, particularly from Qatar, prices are expected to stabilize, and LNG’s lower carbon footprint is likely to boost its consumption.
LNG in Transportation
The transportation sector is increasingly adopting LNG-powered trucks. Additionally, the shipping industry is building more dual-fuel vessels that use combinations of bunker fuel with LNG or methanol.
Adoption of Alternate Fuels
Ammonia and hydrogen are anticipated to overcome current logistical and handling challenges, leading to greater adoption in the energy mix.
Growth of Biofuels
Biofuels—such as bio-LNG, bio-methanol, and bio-ethanol—are expected to play a significant role in the energy mix. However, affordability remains a key issue.
Adoption of Alternate Fuels
Ammonia and hydrogen are anticipated to overcome current logistical and handling challenges, leading to greater adoption in the energy mix.
Growth of Biofuels
Biofuels—such as bio-LNG, bio-methanol, and bio-ethanol—are expected to play a significant role in the energy mix. However, affordability remains a key issue.
Focus on Decarbonization
The decarbonization of various sectors, particularly transportation and shipping, was a major focus. The push towards cleaner energy sources like LNG, ammonia, and hydrogen reflects this commitment.
Focus on Decarbonization
The decarbonization of various sectors, particularly transportation and shipping, was a major focus. The push towards cleaner energy sources like LNG, ammonia, and hydrogen reflects this commitment.
