BAKU, Azerbaijan, Oct.2
By Leman Zeynalova – Trend:
BP will need to commit to significant investments in the renewable energy and liquefied natural gas (LNG) space in order to meet its 2030 target of 50GW in renewables capacity and 30MPTA in LNG, Trend reports citing GlobalData.
BP has set a goal to achieve zero net growth in its, operational emissions out to 2025, 3.5 million tons of sustainable GHG emissions reductions by 2025, targeting a methane intensity of 0.2 percent.
“BP has proven its willingness to invest big outside its core business, but will continue to rely on hydrocarbons as the cash cow for future investments. The current market fundamentals reduce the profitability of BP’s core business, potentially shrinking its pool of capital available for future low-carbon acquisitions,” said the company.
Capital available for investment activity will be challenged as market weakness dents cashflow from BP’s core hydrocarbons business, says GlobalData, a leading data and analytics company.
LNG will continue to play a major role in BP’s low-carbon energy and electricity goals and is targeting significant growth in the sector. In its current equity LNG portfolio, BP is forecast to reach 16MTPA in capacity by 2025, while relying on merchant volumes for the rest of the targeted amount.
“As BP will leverage off its core hydrocarbons business to fund its investment strategy, weakened oil and gas prices will put pressure on the company’s capital availability necessary to meet its low-carbon energy ambitions,” the company said.
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