...

Expansion of gas demand to be supported by economic, policy factors – GECF

Oil&Gas Materials 21 November 2022 17:40 (UTC +04:00)
Expansion of gas demand to be supported by economic, policy factors – GECF
Laman Zeynalova
Laman Zeynalova
Read more

BAKU, Azerbaijan, Nov.21. Amidst the rising global energy needs, the expansion of natural gas demand will be supported by economic and policy factors, Trend reports with reference to the long-term strategy of the Gas Exporting Countries Forum (GECF).

“Natural gas, with its cost and environmental advantages over other fuels (natural gas produces 30 percent and 45 percent less CO2 emissions than crude oil and coal respectively), is considered to be the best available solution to displace coal and oil in various sectors and to complement renewables, while supporting the climate agenda. The expansion of the group of gas consuming countries in Africa, Latin America and the Caribbean, and South and Southeast Asia will represent another driver of demand growth, specifically in the power generation and industrial sectors. However, attempts to demonize the use of gas do exist, in particular through the narrative that natural gas is just another fossil fuel and that methane emissions are harmful to the environment,” reads the document.

GECF notes that natural gas supply has constantly risen, driven by factors such as the expansion of gas demand, development of associated gas production, growth in oil and gas prices, commissioning of new gas fields and increase in wells productivity, with unconventional natural gas production becoming the main source of this growth.

“The increase in shale gas, tight gas and coal bed methane production will further enable unconventional gas supply to strengthen its position in the global gas market. Technological advancement will improve the efficiency of exploration and production operations and decarbonise the natural gas industry through the deployment of technologies such as methane emissions reduction, as well as CCUS. In the meantime, underinvestment in the gas industry over the last several years has negatively impacted the supply side, and is one of the reasons for supply concerns amidst growing global gas demand. The low-price environment since 2014, and in particular during the Covid-19 pandemic period, as well as the accelerated energy transition and Environmental, Social, and Governance (ESG) pressures on companies and financial institutions, have made financing of gas projects costlier and more difficult to put in place.”

---

Follow the author on Twitter: @Lyaman_Zeyn

Tags:
Latest

Latest