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Low-carbon LNG to play key role in global energy system - IGU

Oil&Gas Materials 6 July 2022 13:53 (UTC +04:00)
Low-carbon LNG to play key role in global energy system - IGU
Laman Zeynalova
Laman Zeynalova
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BAKU, Azerbaijan, July 6. Low-carbon LNG is expected to play a key role in the global energy system, Trend reports with reference to the International Gas Union (IGU).

“Several factors led to the increase in approved liquefaction capacity in 2021. A faster-than-expected global economic recovery from the COVID-19 pandemic coupled with increasing LNG demand spurred LNG liquefaction investments as investors placed greater emphasis on fulfilling growing energy needs. This trend may continue in 2022, with the Russia–Ukraine crisis reinforcing LNG’s role in ensuring energy security. Russia is one of the most significant gas sources for the European market through its vast pipeline network,” reads the report released by IGU.

IGU experts point out that coupled with its historically low gas storage levels in early 2022, Europe is particularly vulnerable to short-term movements in supply and demand.

“As such, in the current geopolitical and energy crisis, alternative sources of LNG are critical for ensuring a stable and diversified supply of energy. In addition, decarbonisation and the energy transition remain imperative to meeting the Paris Agreement and goals and avoiding irreversible climate change implications. LNG has a key role to play – not only as the lowest emission hydrocarbon to replace coal and oil and to enable access to modern energy where it still lacks, but also to integrate large quantities of renewable generation. Only gas can provide at sufficient scale the flexibility and backup that renewable generation needs, particularly as its share in the energy mix rapidly grows (and should grow more rapidly still to meet decarbonisation goals). Importantly, the aim of decarbonisation has transcended well into the liquefaction sector,” the report says.

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