Episode Transcript
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Speaker 1 (00:01):
Welcome to the nationally syndicated Energy Mix Radio Show produced
by the Energy Network Media Group. The Energy Mix Radio
Show will give you an inside look at the energy
industry and how it affects you by talking with industry leaders, experts,
and government officials on the Energy Mix Radio Show.
Speaker 2 (00:16):
Welcome to the nationally syndicated Energy Mix Radio Show. I'm
your guest host Jeff Pollock, chief Strategy and Sustainability Officer
at the Port of Corpus Christia Authority, and today I'm
honored to welcome with my guest one of our own,
Ugi Takezwa, Director of Commercial and Business Development here at
the Port. Uji is in his third year here at
the Port of Corpus Christi, before which he spent fifteen
(00:38):
years in various roles at the Dutch midstream company Royal Vaupak,
first in his home country at Brazil and then in
the energy capital of North America, Houston, Texas. Yuji began
his career with Duatechs, where he started building a solid
foundation in market intelligence. Yugi, Welcome to the Energy Mixed
Radio Show. Thank you so much for being here.
Speaker 3 (00:58):
Thanks for having me, Jeff.
Speaker 2 (01:00):
It's going to be fun, okay, Usually tell us about
your roots in Brazil. How did your upbringing and your
education lead you to a career in international business?
Speaker 3 (01:10):
Jeff. Living abroad was kind of in the DNA of
the family, as my family immigrated from Japan in the
late forties early fifties. My dad's Japanese, by the way,
he was born there and moved to Brazil. But coming
from US, a middle class family in Brazil, living abroad
was really not a reality for us, right, even traveling
(01:31):
abroad was not a reality for us. I think the
first time that I ever considered to travel abroad was
probably in early two thousand. I was an Internet Dora
Texs used to work in the customer service department, and
because I was in college, I was reading a lot
about customer relationship management. I had opportunity to learn about
(01:53):
that topic, and I proposed my manager that I could
probably develop like a customer relationship management proge using Excel.
Right at that time, we had the only big IBM inframes.
He may was just starting right and I had this
idea and my manager supported me. And what ended happen
is that the system was very successful, and my manager
(02:15):
showed case our system to one of our subsidiaries in Argentina,
and I was invited to go there implement the same
system in Excel. Can you believe it? Right in Excel
in Argentina. But unfortunately, in two thousand and one, Argentina
faced a big economic downturn in my travel was canceled. Right.
(02:36):
But then what happened is that I figured that I
would be able to work abroad, right, and this became
one of my obsessions. Right, I said, you know what,
I think there's an opportunity for a guy coming from
a small town to work abroad.
Speaker 2 (02:48):
So you had not traveled abroad before this?
Speaker 1 (02:50):
Never?
Speaker 3 (02:50):
Never? My first trip was in two thousand and nine.
Speaker 2 (02:52):
Okay.
Speaker 3 (02:53):
Yeah. So having said that, I thought, okay, I need
to build a very strong resume to be able to
compete in the job market with a lot of candidates, right,
they were basically trying the same and the only ways
for me was really to go and leave my hometown
to go to St. Paul some policies like New York
(03:14):
in Brazil right as the business center of a Brazil.
So I started right after college with my first NBA
that was being business management. After two years, I graduated
and I decided to keep studying because I said, you
know what, everybody nowadays have an NBA, so why not
(03:34):
the second one?
Speaker 2 (03:35):
Right?
Speaker 3 (03:35):
So I did my second MBA in marketing. By the
age of twenty six, I was a Bachelor in Business
Administration with two nbas and I was invited to teach
in the college that I graduated, right, So that's the
way that I thought, Okay, now I have a very
strong resume. But I was you working my hometown. So
(03:57):
using other knowledge film from the markets NBA, I started
applying and I started developing some market research.
Speaker 2 (04:05):
Right.
Speaker 3 (04:06):
So we were a cout center.
Speaker 4 (04:08):
Uh.
Speaker 3 (04:08):
But basically what I did was to evaluate all the
low the period of times that we had low volume
calls still with attacks, it's true, with tacks, yes, And
then I started using the time to loune research with
customers that recordings.
Speaker 2 (04:26):
Right.
Speaker 3 (04:27):
I started sending these reports to the management at draw Attacks.
I was a little bit naive. I thought everybody was
going to like it. But of course the marketing manager
didn't like it, right because it was this was not
coming from from their department. But one of the mains
actives there saw the reports and invited me to join.
Then the headquarters in some Paulo to launch a new
(04:50):
department that was marketing intelligence. Right after three years, I
figured that the ATTACKS was really a national company, right,
so the chances to work was very limited. So I
said that I took the decision that I had to
leave do that extra work in a real international company.
And that's when I joined vote back, right issue, When
(05:12):
I joined vote Back with chewing resume now moving down
to Santos, it took me seven years, and so I
really had the opportunity to relocate to Houston in this case, right,
even work in many different countries in Latin America. The
only change that I had to move to a fine
country was in twenty fourteen.
Speaker 2 (05:33):
Okay, So first of all, what I love most about
this is how just intentional you were at every stage.
I mean you you set objectives for yourself. Mean you
know this is strategic thinking in action, right, Like, you
set objectives and then you went as far to get
a second MBA in order to build a foundation that
(05:54):
would support those objectives, which I think is just it's
incredibly inspirational. But you said, if I heard you correctly,
you said You're first international flight, like transcontinental flight was
two thousand and nine.
Speaker 3 (06:03):
That's right, z Ica, you were in your thirties. I
was thirty one years old. And the only reason I
took this strip was because I joined vote Back in
two thousand and eight. It was really for the first
time in a real international environment.
Speaker 2 (06:17):
Yeah.
Speaker 3 (06:18):
So I had to write all the reports, read all emails,
I had international calls, everything in English. And after one
year at Voteback, I said, you know what, I don't
know English really well. So I paid for my own
pockets a trip to Canada. I spent thirty days in Canada,
leaving a student at a time, just to learn English.
Speaker 5 (06:37):
Wow.
Speaker 2 (06:37):
Yeah, yeah, I mean, honestly, what's so I mean, what's
so amazing about this is having traveled with you to
multiple continents over the last three years. I mean, you
flow so naturally in and out of different cultures. I know,
your fluent in three languages. You conduct your daily business
in your non native tongue. I mean I would have
thought you were sort of like born in business class,
(06:58):
so to speak. You know what I mean, travel, Right,
It's just it's it's such a natural part of your practice.
It's like it's just so amazing to understand that how
deliberate you were about cultivating that's for edge.
Speaker 3 (07:08):
Yeah, and district clarified Japanese not one of the lemons
that they picked, right.
Speaker 2 (07:12):
Yeah, right, not yet anyway, not yet? So okay, So
join Votepac in two thousand and eight. You moved to
Houston in twenty fourteen, you know, with VOPAK for a
total fifteen years. May not definitely interested in some of
that experience, but also interested in how you know what
inspired you to to ultimately VOPAC. I mean, how did
(07:32):
you parlay that into your position at the port. Yeah,
it was not a easy decision. Right vote back was
everything that I knew in the US so and basically
it came to the US sponsored by vote right. So
breaking that relationship was not something that was really eased, Right,
But I thought that I had way more excuse show
(07:52):
offord to the company at a certain moment, right, and
that they were not really taking advantage. It was shue
growing right, But I felt that I had to give
the next step right, And one of the conversations with
my wife at the end of twenty twenty one, she
was kind of asking me because she felt that I
was not as happy as I used to be, right,
(08:14):
and our dream was to come to the US, right.
But at the end of the day, I was not
feeling really happy where I was.
Speaker 3 (08:22):
Right. So, just reflecting through everything that I went through
at Votepack, I figured that I was missing like a
purpose in life. Right. So I was really happy with
my job, but I didn't really have a purpose anymore, right,
So I didn't feel that I was contributing the way
that I could be.
Speaker 2 (08:42):
Right.
Speaker 3 (08:44):
So end of twenty twenty one, I got a call
from one of the head hunter offered me a position
in corporate security. At the moment, I said, you know what,
why not right, And I had the opportunity to meet
with all the leadership team at the time. Shown Strawbridge
was the CEO, had met with you, Omar Kant Clark,
(09:04):
and I spoke to everybody in the vision you guys
said about the future of the business, right and everything
that was going on in Corpus Greece. I really, I
really found that I could be part of this transformative
growth trajectory in Corpus Greece. That that's what's called my attention,
That's that's the main driver behind why it took the decision.
Speaker 2 (09:23):
To move to Corpus cresin Man. I love that. I mean,
I again just the intentionality in your decision making and
and certainly I can relate to the ambition to have
a larger purpose in your practice, right, and so you
you for the first time, were found yourself in the
public sector, said the private sector. I'm very curious about
(09:46):
from your experience, I mean, leading business development and commercial
development in the public sector for public enterteeming the port
is a political subdivision of the state, is very different
than it is then doing so, you know, in the
private sector and particularly an inner national outfit like like
well Pack, what was that recalibration like for you? I
mean what what what were the main you know what
(10:07):
aside from some of the obvious things, I mean, what
was it that was challenging and interesting?
Speaker 3 (10:13):
I think the business development and public segment is broader
than a business development and private segment, right, because we
need to be really strategic enablers of projects. So it's
not just developing the project itself, but helping the project
developer just succeed, right, So really thinking through the infrastructure,
how we can provide better strategic feed to the developers.
(10:34):
So that that's what makes business development public segment really
interesting because you need to have a broader perspective of
the project, not only focusing on your part, but also
making sure that you can help the developers to developer
your product.
Speaker 2 (10:49):
Yeah, I mean, I think that's really an elegant way
to put it. You know, the port as enabler, right right,
I mean common reports, a common doomtre or so many
different commercial developments, but it's not an equity partner or
a developer of any of them, right, So that's correct. Yeah,
I think that that. I mean that that's acutely different
from the role of developer, but is also creates an
(11:11):
opportunity to be involved in so many different aspects as
an enabler. We're going to take a quick break and
when we come back, we'll talk more with ug about
the corstones of his professional practice and support of corporate
Christie here on the Energy Mix radio show.
Speaker 4 (11:25):
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Speaker 2 (13:02):
Welcome back to the nationally syndicated energy mix radio show.
I'm your guest host, Jeff Pollock, and today we're talking
with Uji Takazala from the Port of Corpus Christy okay Gi.
You mentioned joining the Port during a transformative time, and
you know, and you sort of alluded to some of
the changes in the Port's business at the time when
you join, and we can talk a bit about those,
(13:23):
but I want to dig a little deeper into what
you've done to transform business develpment here. And I say
that deliberately because I really do believe that your presence
has been transformative for this organization truly. So what you know,
what have you done to change the way that the
Port evaluates commercial decisions relates to customers? Tell tell me
(13:44):
about your underlying philosophy in this practice here.
Speaker 3 (13:47):
Sure, and my philosophy, Jeff, is rooted on customers santry right.
So when it came to the Port in Tony twenty two,
we implemented forming pillars in our department that basically ensures
that we are listening the customers. Well, so everything that
we do we take into consideration customer needs right, and
(14:07):
we adapt to our reality. Right. So the first pillar
is really the commercial pillar. The ideas that we nurture
the existing relationships, so we deep in the conversation with
the customers to really understand what are the market drivers,
what are their needs, what are their plans for the future,
So we ensure that whatever we are doing we take
(14:27):
into consideration their inputs, so we don't start like building
things that they don't really need.
Speaker 5 (14:33):
Right.
Speaker 3 (14:34):
The second pillar is then is more focused on the
external part, that is the business development. But the same
way that we listen to the existing customers, we also
want to listen to potentially new customers, right. And the
whole idea is that we co create value together with
these partners, so in a way we develop infrastructure that
(14:55):
is going to match their needs, but also that can
create synergies with our existing right. Again, I think the
idea behind is that new markets are really hard to develop,
so if we are able to risk their investment where
we can have more success in attracting new business here. Uh,
(15:15):
these first two pillars are really market facing, right, So
it's really focused on the listening to the customers and
trying to deliver whatever are their needs again align with
our strategy, right. And the third pillar that we establish
is the marketing pillar. The marketing the main focus is
to then communicate to the customer in a more customized way. Right.
(15:42):
So we have many different segments here the port from
LNG crude oil to dry book or whatever commodity, so
we want to make sure that we speak their language
and we are able to be relevant to their business needs. Right,
So the marketing piece is that. And then the commercial
performance that is my last pillar that is really data
(16:04):
driven pillar where we look into KPIs we evaluate our performances,
but we also create methods to evaluate new businesses and
to support basically our decision.
Speaker 2 (16:18):
So good, so they just start with that sentence.
Speaker 3 (16:20):
The last one, right, and the final pillar is the
commercial operations. And the whole idea behind is to have
data to support our decisions, right, so we can rely
our decisions in more information. That's basically the four pillars
and on in all the whole ideas that we really
listen to the customers. We develop infrastructure that they need,
(16:44):
but we also are able to adapt to the infrastructure
that we have in creating value to the customers. That's
what is behind the my philosophy.
Speaker 2 (16:52):
Yeah, I mean, I'm just marveling at this because I
can say definitively, although I have only been a port,
you know, I was a port for five years before
your arrival. You know, your rival marks the first time
as amazing as this is in the port's ninety five
year history to that point, where commercial strategy was entirely
(17:16):
data driven and customer focused. I mean, it seems hard
to imagine that that would be the case, but you know, ports,
like municipalities, tend to evolve and grow organically over time
in a purely reactionary way. So I think the fact
that you know, again you're bringing this intentionality to the
way the port grows in different value chains with different commodities,
(17:38):
I think is such a unique thing in the port space.
And I wonder if folks outside of maritime realize how
infrequently you really find this. So in terms of those
analytical pieces, I mean, what are the primary sources of
market intelligence and data that are the basis for your
commercial strategy? And now you're such an analytical guy, You've
(17:58):
got your career rooted in market analysis. How have you
brought that here? What kind of data and analytics are
you using here?
Speaker 4 (18:06):
Yeah?
Speaker 3 (18:06):
So we have two main different datas that we collect.
So the first one is really from the customers because
there's a lot of stuff that is not going to
be in the news. Right, So basically having these conversations
with the customers is really funny because the first time
we start visiting these customers, some of them that we're asking,
why are we visiting us?
Speaker 2 (18:24):
Right?
Speaker 3 (18:24):
Is there anything wrong? Because this is such a new
thing for port authorities, right, So the portutoris normally they're
more in the position to cost the customers in house.
Why I can step going and after them and asking
the questions, right, So yeah, there comfort terms of yours
exactly exactly. So the first I would say, the first
source of information is coming from the customers of course,
(18:47):
and then secondary one is true events conferences that we
that we attend, but also market reports big consultant companies. Right.
Speaker 2 (18:57):
Yeah, that's really interesting. I am really I'd like to
dig further into your strategic vision for the port and
how these these data and analytics are informing that. So
let's take a quick break. When we come back, we'll
talk more with ug about a strategic vision for business
development here on the Energy Mits radio show.
Speaker 4 (19:20):
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Clinic on Wednesday, October first, from nine am to one
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Speaker 2 (21:22):
Welcome back to nationally syndicated Energy Mixed radio show. I'm
your guest host Jeff Pollock, and today we're talking with
eug dok Zala. So Eugi, I think it's very clear
by now to anyone who's listening that you are a
strategic thinker. Maybe describe for us, if you can, what
a truly enlightened end state looks like for the port
of Corpus Christie. When you have you know, what is
(21:44):
your envision when you have achieved everything you hope to
accomplish here in commercial and business development, how are we operating?
What does it look like? What differentiates this port from
other ports?
Speaker 3 (21:55):
Yeah? So what differentiates us from what other parts would
be when we trans you completely from being reactive to proactive. Right, Infrastructure,
as everybody knows, takes so long to develop, right, So
in order for you to be ahead of the market,
ahead of our competition, we need to be able to
develop today the infrastructure strategy that is going to accommodate
(22:17):
not only the market we handle today but also the
future commodities. Right. And the ways for us to do
that is really to be in front of the market. Engage,
always engage early with not only customers, but also with
ship developers, with technology providers, with engineering companies, so we
(22:37):
can understand not only what is the market drivers, but
also what are the market requirements. So, for example, we
were together in Japan in twenty twenty two, right, talking
to the main ship builders in Japan, and they were
providing us with designs of ships that are not even
the market nowadays.
Speaker 6 (22:56):
Right.
Speaker 3 (22:56):
What is going to be the next level or the
next technology that is to be applied? That's really important Jeff,
because when we look into building new infrastructure, right, we
make sure that we incorporate all these inputs in the
future needs of the market, so that that's the only
way for us to be ahead of the competition. I
would like to highlight how important it is for us
(23:18):
to be attaining these conferences and not only not only
in the US, but also internationally, because that's where we
are able to have a broader understanding of the trends,
how the market is going to evolve, but also how
the technology is going to evolve. Right. Technology is a
key thing that we have been discussing right now, digital twins,
(23:40):
different forms told manage the assets right. So it is
important for us to be ahead of the market, in
front of these customers, in front of the technology providers,
to understand to fully understand what's going to be the market. Right,
That's how we can position ourselves ahead of the competition.
Speaker 2 (23:56):
Yeah, now you're speaking my love language when you mentioned
digital tools and the digital swin, and I really appreciate
that you brought that up because I do. I think
that the port of the future is a fully integrated,
fully connected, fully technological port. Mean, it's about sensing and
modeling technology and the way you integrate those in your practice.
So the fact that you're acknowledging that, I think is
(24:18):
so unique. I think port authorities, particularly public port authorities,
are so often just in a utility function where they
are purely reacting to the market. The fact that your
ambition is one of being in a purely proactive condition,
both commercially and in terms of the instructs that we
build and manage, I think is so singular.
Speaker 6 (24:39):
Right.
Speaker 2 (24:39):
I came and emphasized that enough, it's so unique among ports.
I'm wondering if you can give us like a concrete example.
So I understand there's that end state, and here we
are today. Think about, you know, if we're building, you know,
pick the next terminal you expect to be built. How
do you simultaneously accommodate for the value chains and the
(25:00):
comodities that you are are handling today that are necessitating
that infrastructure, while still making provisions for what may come
down the line.
Speaker 3 (25:10):
Yes, so the energy market is not going to completely
change the business model that we operate, right, So liquids
are liquids, gases are guesses, right, So the infrastructure we
have nowadays can completely serve the purpose of the new
markets that we're going to see here in Corpus Greasy.
So's it's more about being able to develop the infrastructure
(25:32):
that we'll be able to accommodate these new loading arms
or these new pipelines. But at the end of the
DAYTA basiness fundamentals are stually the same, so.
Speaker 2 (25:41):
You know, a very natural pivot for us as a
liquid energy for it it is okay, so effectively different
top side equipment, same doc, same channel.
Speaker 3 (25:48):
Same dog, same same customers, same customers.
Speaker 2 (25:51):
Yeah, that's that's what I'd like to dig into. We're
going to take a quick break and when we come back,
we'll talk more with ug about what changes in European
and Asian energy markets mean for his work at the
premiere energy export Gateway in North America here on the
Energy Mix radio show.
Speaker 1 (26:07):
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marketing company that has a proven track record with this
growing industry. Shale Oil and Gas Business Magazine is the
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(26:27):
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Speaker 2 (27:22):
Welcome back to the nationally syndicated Energy Mix radio show.
I'm your guest host Jeff Pollock, and today we're talking
with ug Takazawa so Yugi. This is a very dynamic
time in terms of energy policy at the ports Cornstone
Trading Partners in Western Europe and in North Asia. What
are you doing to position the port not just to
(27:42):
survive you know this, call it the policy pendulum, but
to really thrive in dynamic conditions and in whatever the
equilibrium is that comes out of out of this policy change.
Speaker 3 (27:53):
Okay, Jeffery's important in strumation that we as a port,
we are already well positioned the energy market. Right. We
are the largest crude oil exporter in the US, second
largest energy so in terms of energy, we're really well positioned.
So the business fundamentals, if you start adding different molecules
energy molecules to the mix, is not going to completely change, right.
(28:17):
So for example, take our existing dogs, so the same
dogs that we handle refining petroleum products in crude oil,
with minor change or some adaptation, right, we'll be able
to handle the new commodities like ammonia or even some
hydrogen derivatives. And with no changes at all, we can
(28:38):
see handle methanol and the efuls for example. Business fundamentals
are shoe pretty much the same right in markets customers,
the countries that will receive these molecules are basically the same,
so really well positioned, UH in this market are ready
with differstructure that we have, right, so we'll be able
(29:00):
to use our own dogs to handle these new commodities
and the risk, the risk, the investment for discussoers. We
saw recently a very good example where existion infrastructure can
help these new markets to thrive. So we recently have
had the beginning of twenty twenty five a co load
of bu propane and ammonia happening here in Corpus Greasing,
(29:23):
one of the diseasing docks, right. So this is where
the existing midstream players they can help these markets to
drive because the same docks can handle multiple products, right
and having the economies of scales for these players who
make a lot of sense and will do the risk
the investment for everybody.
Speaker 2 (29:42):
So just to make sure we unpacked that probably so
we had two commodities welling in the same vessel over
the same.
Speaker 3 (29:47):
Birth, not over the same birth at this time, but
it displays how it can be done.
Speaker 2 (29:52):
Right.
Speaker 3 (29:53):
So if you have a money production in Corpus Greasy,
you could co load ammonia together with propane at the
same ship. Why you don't have the economies of scale
for ammonia, you could colude both of them at the
same doc and basically going to the same markets.
Speaker 2 (30:07):
Right.
Speaker 3 (30:07):
Because Europe for example, is consuming lpg's from the US
and they are also we will also consume a money
from the US. Right, So this is how you can
utilize the sem infrastructure for different commodities.
Speaker 2 (30:19):
Yeah, I think so this is really interesting. I think
this is you use the word d risk now a
couple of times, and I think, what's what What's important
highlight here is that markets don't they aren't born at scale.
They start at modest scale, and those scales don't necessarily
support a full vessel at you know, transoceanic movements. But
(30:40):
so this capacity to mix and match commodities for a
given leg of a journey, you know, off the same
birth or adjacent bert's going to the same inbound port,
inbound at the same port, maybe even sponsored by the
same customer. I mean, this is how you this is
how you get over that barrier to entry, right.
Speaker 3 (31:00):
And that's where we play a very important role, right
because as being a strategical neighbor of the project, we
are able to understand what are the assets that are
under JILS that could be used for these new markets.
So we play a very important role in this entire
scheme just being able to provide infrastructure that the customer
(31:20):
needs for a lower risk that they are not willing
to force.
Speaker 2 (31:24):
Yeah, So when you're and when you say that, you're
speaking of instructure that the poor authority itself owns. So
polict renrastructure, Okay, that's right, that's right, as opposed to
a customer who wants to move a commodity having to
fund construction of their own in terms, that's completely right,
and that breaks the economics. Presumably, that's probably.
Speaker 3 (31:43):
Right, okay, And this takes us us also to the
new infrastructure. Right. So, for example, we're developing right now
Liquids DOC seventeen. That's how we call this project. It
is a dog that can accommodate not only the commodities
of today, so crude oil or in refined fuse, but
we are also being very strategic in the way that
we develop it, considering that in the future we might
(32:04):
have a mooner being exported through the same dock. So
when we think about the infrastructure itself, were developing a
way that we can accommodate both already, so we don't
need to reinvest the money in the future.
Speaker 2 (32:17):
Exactly. So be really specific with us, what does that
mean in terms of how will that dock well different
than a different liquid stock in order to make sure
you can accommodate multiple commodities.
Speaker 3 (32:27):
What are the changes, And that's a very interesting question
because this is not a lot of changes, right, So
in terms of ship sizes, basically it's going to be
the same. The crude oil Swiss Max is more or
less the same size of a very large guest carrier.
Speaker 2 (32:40):
Which draw tell for those who may not know, but
are you know, curious throughout this sort of thing, how
big are those vessels, how long, how wide? And what
do they drive?
Speaker 3 (32:48):
These vessels are are nine hundred and fifty feet long maximum, right,
and they can carry if in the case of crude oil,
one million barrels, in case of ammonia, forty five thousand tones.
Speaker 2 (33:02):
Right.
Speaker 3 (33:03):
This this is kind of the difference, but the main
difference in the uniqu frastructure is basically the dock structure
to accommodate loading arms. So instead having only loading arms
for crude oil, you need to have a space to
accommodate loading arms for for ammonia. Right, So these are
the basically the basic difference between the two.
Speaker 2 (33:23):
So basically twice as much top side equipment and you
can accommodate the saying that's size and so as long
as you plan for that from the onset, everything else
remains fundamentally intact and that's complete. Right. Okay, So so
just in our last minute, so you mentioned a couple
of times also that and I think this is a
really interesting thing to highlight. Many of these energy expansion
(33:46):
projects or new energy projects involves some of the same
many of the same customers, right, I think I mean
in your experience, are there any of these new energy
projects that don't involve a familiar household name in the
energy space or was it really the same body of players.
Speaker 3 (34:04):
It's interesting there, right, So we see more and more
renewable power developers get involved in in hydrogen and monti
production and they see us on integration or a virtual
integration within their activities. Right, So we might be we
might see more and more of the power developers also
(34:24):
playing an important role in the liquids and gases molecules.
Speaker 2 (34:28):
Okay, yeah, I really want to pull that thread. We're
gonna take a quick break and we come back. We're
gonna wrap things up by pulling out the crystal ball
here with ug takes Awa on the energy.
Speaker 3 (34:38):
Mixed radio show.
Speaker 6 (34:40):
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Speaker 2 (35:42):
Welcome back to nationally syndicated energy Mix radio show. I'm
your guest host Jeff Pollock, and today we're talking with
Uji Takasela eug You have such unique vantage on the
world energy marketplace. Not only have you worked as an
analyst and in business development and various market segments, but
the port of Corps Christie is a commercial common denominator
to a very wide array of commercial projects. Tell us
(36:03):
what you see at various distances on the horizon. You
mentioned you know in your in the previous answer, you
talked a little bit about future fuels and what I
would describe as the era of and you know, yes
and energy expansion. What does the growth curve for LNG
look like? When are we going to see the first
shipments of low carbon ammonia leaving the Gulf coast and
will they be bound for Rotterdam or Antwerp or North Asia?
(36:27):
What other stories do you see in the energy marketplace
that might be interested to interesting the listeners here.
Speaker 3 (36:32):
Yeah, Jeff Elling will continue to be one of the
key uh it's called a ready transition fuels right because
it is already low lower carbon foot grid. Right. Europe
will continue growing their conception with LNG. You as will
continue investing in new term those rights. We saw already
(36:54):
a huge, big number of new investment decisions made by
American companies to reach the LNG export capacity in our region.
If you look what Sheineer has been doing, right, they
are just finalizeding stage three expansions more than fourteen million
tones per year of additional volume. And Engineer just announced
it if any investment decisions for trains eighty nine, that
(37:16):
we had an other three million tones of LNG in
the market. So it is a big testament that the
markets really bullish about LNG. Right. I was attending SIR
a week this year and the main topic was about LNG.
Speaker 2 (37:32):
Right.
Speaker 3 (37:32):
Surprisingly, again lergies back to the to the table. But
I think what is important for us to figure is
that power consumption is going to is going to surge.
Speaker 6 (37:44):
Right.
Speaker 3 (37:44):
There's a big push for AI, big push for cloud solutions,
and power consumption is going to require a lot of
gas locally to supply the power plants. So there's a
there's a balance between a big battle between local assumption
and exports. So my thing is that we need to
embrace all energies right. I don't think that we are
(38:07):
in the era of replacing traditional fuels. But we are
in the area to add additional energy to the mix.
Speaker 2 (38:15):
Right.
Speaker 3 (38:15):
That could be in the form of renewable power, so
more wind, more solar, in the form of new technologies
like hydrogen and efuse, but why not also nuclear power? Right,
I think there is a need for additional power in
the grid, and basically it's more about as I said, well,
the end clit is going to be traditional fuels and
(38:37):
renewables and hydrogen and nuclear power. That's the only way
for us to guarantee that power is going to be
accessible for everybody with a very competitive price.
Speaker 2 (38:47):
Right.
Speaker 3 (38:48):
When you ask about new energy, specifically about hydrogen. Right,
there's sue a lot of gaps in the regulation, and
I think the lack of clarity in these markets is
lowing down a little bit to the development of these projects,
but also increasing the risk for this development. So there
is true a gap to be covered that I think
(39:09):
is going to happen. I think all the countries are
working towards of resolution in Europe. In Asia, maybe here
we had some setbacks, but I think we're going to
get there. In terms which country is going to receive
the first lower carbon product, right, I think Japan is
really well positioned. In twenty twenty four, they tested a
(39:32):
co firing program of coal and ammonia. That's a ratio
of twenty percent. It was really successful with not a
lot of investments infrastructure. That again displays that taking advantage
of existing infrastructure to the risk these new markets is
really key. So I think Japan is going towards a
(39:54):
very good direction. South Korea is also following the same.
Europe is look to different technologies. So one of the
things that they're looking to is the technology to crack
back ammonia into hydrogen. This is nowadays very expensive, right,
so we understand really well, but you cannot forget the
(40:16):
fracking before twenty finy two was also a very expensive technology, right,
Look where we are today. So my point is that
I think all these technologies are going to evolve in
a way that we become economically in the future.
Speaker 2 (40:29):
Yeah, look, I'm that analogy is a great one, right.
I mean, everything seems inaccessible until it isn't exactly, And
I think highlighting as you did, the difference in the
Asian markets versus Western Europe, where in Asia, I think
the barrier to entry is a little lower because we're
talking about using ammonia as ammonia, so co firing low
(40:49):
carbon ammonia in a colpire power plant with minimal changes
to infrastructure existing co fire right as a way to
extend the life of col fire assets. Yeah, I think
that intuitive, right. The more steps of transformation that you
take out of the process, the lower the bearer to
entry is. Yeah. I think that's really interesting. So I mean,
if you'd be so bold, give us some more predictions,
(41:12):
when do you think if those first if that first
shipment of low carbon ammonia is bound for Asia, either
Japan or Korea, when do we see those molecules sell
from the Gulf coast? Is it going to be out
of corks of CHRISTI and when?
Speaker 3 (41:26):
That's a million dollar question, right, Jeff, I think it
might happen, or it could happen as early as twenty thirty,
twenty thirty one, that's my bad. I think differently from
what the market was predicting two years ago. Is not
going to be a huge volume in the beginning, and
(41:47):
so I think there will be a transition between gray
hydrogen or gray ammonia into blue ammonia and then at
later stage green ammonia. I think green ammoney part probably
could come by twenty thirty five. Up to twenty thirty.
Speaker 2 (42:04):
Five, maybe we should define those for folks who may
not play in this space the way we do so.
Gray ammonia hydrogen that's produced by breaking a methane molecule
without managing the carbon. Blue ammonia also made hydrogen from
methane molecule, but the carbon is captured and then either
utilized or sequestered geologically forever. And green ammonia hydrogen that's
(42:25):
produced using renewable electricity thus buru electrolysis by breaking a
water molecule, so no carbon foot front.
Speaker 3 (42:31):
Are all no carbonyl carric catil. Yeah, so I think
green ammonia will will probably come later just because of
the regulation leiche to be a little bit more mature
for these markets, right, and also the price pointed should
be more compensive.
Speaker 2 (42:45):
Yeah, that's interesting. I hope you're wrong. I hope those
timeframes are wrong, but I certainly understand the data bases
for them, and you know, and I think you know,
as you highlighted so elegantly and describing the movement of
multiple commodities in single vessel, I think that you know,
hopefully even at less than world scale, there's an opportunity
(43:06):
to get the party started by moving even if it's
not even a full vessel worth of one of those cargoes,
just to prime the pump right in some of these
receiving marketplaces. Okay, so we have less than a minute
left recognize the importance of parody between an export gate
like gateway like hours and the receiving ports in Western
(43:28):
Europe and North Asia. What are you doing to make
sure that we are staying in lockstep with our partners
across the ocean, Jeff.
Speaker 3 (43:34):
Since twenty twenty one, we have a MoU with part
of Rotterdam that is a very strategical one where we
have conversations with players that are in this side of
the pond, like surely likes to say, but also on
their side of the pond, and we try to match
their interest right. So that's how we can create parity
between export marketing port market because basically the interests of
(43:56):
both sides are the same, right. So that's how we're
doing positions to actually be successful.
Speaker 2 (44:01):
Yeah, that's a really unique thing. To be able to
serve customers the entire logistics chain right to accommodate customers
on both ends because we do share such a large
customer base. Okay, unfortunately we're out of time. I'd like
to thank my guest, usually Takazawa than for joining us today.
I'm Jeff Pollock. Thank you so much for joining us
(44:21):
here on the Energy Mix Radio Show.
Speaker 1 (44:24):
The Energy Mix Radio Show is where we explore topics
that affect us all in the oil and gas industry.
Every week, our host will interview the movers and shakers
in this fast paced industry. You'll hear from industry experts,
elected officials, and many more on the Energy Mix Radio Show.