• Tuesday, June 18, 2024
businessday logo


Global energy mix: Natural gas share to rise 27% by 2050

Global energy mix: Natural gas share to rise 27% by 2050

The Gas Exporting Countries Forum (GECF), the global platform of the leading gas producing countries predicts that the share of natural gas in the energy mix will increase from 23 percent today to 27 percent by 2050.
In their annual GECF Global Gas Outlook 2050 (Outlook), a report on the status of natural gas up to the middle of the century, finds that natural gas can become the fuel of choice in satisfying the growing world energy needs, addressing climate change and improving air quality.

In his overview of new-edition Outlook, Mohamed Hamel, Secretary General of the GECF, highlighted the continued prominence of natural gas in various energy outlooks and pathways.
“The GECF Global Gas Outlook 2050 underscores that investment in natural gas is critical for the stability of global energy systems. It projects that by 2050, total upstream and midstream investments will reach a hefty US$ 8.7 trillion”

Read also: FG insist on promoting gas, renewed investments in the hydrocarbon for Africa energy sector

“Environmental policies are a key driver of the projections contained in the Outlook. In this context, whilst upholding that natural gas is the cleanest of hydrocarbon fuels, the Outlook explores the state of technologies that will make it even cleaner.” Hamel said.

The GECF members is an association of 19 countries, who together represent 71% of the world’s proven gas reserves, 43% of its marketed production, 52% of pipeline, and 58% of LNG exports in the world.
Global gas trade is expected to increase by 45 percent by 2050, growing at a 1.5 percent annual rate between 2020 and 2050 to reach 64 tcf and account for one-third of global gas demand.

Nigeria, one of the largest producers of natural gas with a proven reserve of over 209 tcf continues to promote gas as a key fuel for meeting growing baseload power generation, while also monetising associated and flared gas.
Natural gas is Africa’s greatest opportunity, not just as a transition fuel to a green economy but also as a long-term solution for energy supply, the Forum said.
It estimates gas production in Africa to increase by an annual average growth rate of 2.8 percent from about 8 tcf in 2020 to more than 18 tcf in 2050.