Wednesday, August 20, 2014

Coming to the South China Sea: Asia’s Big Energy Mistake?

Coming to the South China Sea: Asia’s Big Energy Mistake?

08/19/14
http://nationalinterest.org/blog/the-buzz/coming-the-south-china-sea-asia%E2%80%99s-big-energy-mistake-11103

Stewart Taggart
Energy, China

A “tragedy of the commons” looms. 

Editor's Note: Please see Stewart Taggart's previous articles: A Plan to Save the South China Sea from Disaster as well as A Plan to Save the East China Sea from Disaster.
Planned Floating Liquid Natural Gas(FLNG) projects in Asia raise hard questions about the technology’s suitability.These include unproven durability,  questionable efficiencies and
“Tragedy of the Commons” resource exploitation. Regionally-interconnected gas pipelines look like a much better long-term deal.
To date, the largest FLNG project planned for Asia is Shell’s US$12 billion Prelude project off Northwest Australia. Further north, Malaysia’s state-owned Petronas  has approved a two billion cubic meter per year FLNG project for the shallow waters off Malaysian Borneo. Australia’s Woodside Petroleum is studying FLNG for Northwest Australia’s offshore Browse Field. Japan’s Inpex is considering FLNG for its Abadi project in offshore Indonesia. China National Overseas Oil Company (CNOOC) is considering FLNG to develop gas supplies in disputed waters of the South China Sea.
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