Natural gas share in total generation to grow to 26% in 2029
BAKU, Azerbaijan, Nov.18
By Leman Zeynalova – Trend:
Natural gas generation will grow globally over the next decade, which supports our positive outlook for liquefied natural gas (LNG)-to-power projects, Trend reports with reference to Fitch Solutions.
“Globally, the share of natural gas in total generation is expected to grow from 24 percent in 2019 to 26 percent in 2029. The most robust growth in natural gas generation is expected in Asia however all regions will see a positive rate of growth. We expect that the decarbonization of the power mix across countries coupled with technology-driven efficiencies of natural gas power plants will remain key drivers supporting the upward trend for natural gas. Along with more traditional pipeline gas projects, LNG-to-power projects - which usually include an import LNGfacility, either an onshore terminal or a floating unit that feeds an on-site power plan - have been growing over the last years. Although the LNG-to-power market remains nascent, it shows a lot of potential worldwide, as countries pursue a transition towards more clean energy while looking for an alternative to the pipeline gas.
“Seeing a strong push towards the expansion of natural gas power generation, Asia is also set to see a number of LNG-to-power projects. We expect to see an influx of LNG regasification projects, especially in South-East Asia as countries like the Philippines, Vietnam, Indonesia or Myanmar pursue a large-scale decarbonisation strategy, some switching from oil to natural gas power generation, and aim at tapping the global LNG market.
“We continue to see that limited domestic supply of natural gas, insufficient access to natural gas pipeline grid and/or natural gas supply diversification are key factors working in favour of LNG-to-power projects. Countries reliant on oil in their power mixes are also keen on implementing LNG-to-power solutions to decarbonize their economy.
“LNG-to-power projects have also become an alternative for economies that rely on petroleum fuels in their power mix. That was the case with the project in Gibraltar, where the only power plant was converted from marine diesel to natural gas. In our view, investment in LNG-to-power facilities as a means to decarbonize the power sector will likely gain additional momentum with the advancement of technologies in liquefaction and power generation facilities that would reduce the emissions footprint of the LNG industry. We have updated the list of our key projects this quarter, adding nine new projects and providing more details and latest news for a number of projects,” the company said.
Follow the author on Twitter: @Lyaman_Zeyn