Optimising the energy mix to ensure a robust, resilient & affordable supply
Energy diplomacy and national policies are set to play a bigger role in the coming years as trade between trusted partners increase and governments intervene more in energy markets to finance infrastructure and secure supply via government-to-government deals.
JERA and KOGAS recently agreed to cooperate on joint LNG purchases and swaps to enhance energy security and attempt to limit price fluctuations, which saw Asian spot prices hit a record US$70.50 per mmbtu in August 2022.
Government-to-government agreements such as this highlight the need to establish new partnerships and supply chains to counter geopolitical uncertainty, limit price fluctuations, and maintain energy security. It is also necessary to reduce the cost of production from legacy infrastructure by incorporating new technology in the up and mid stream, whilst introducing new measures to reduce carbon emissions throughout the value chain.