Natural gas has all the attributes to deter climate change, increase energy access for millions and chart a path to recovery from the deadly Coronavirus panemic, experts say.
The world’s top gas exporting countries under the aegis of Gas Exporting Countries Forum (GECF) an intergovernmental organization met last week calling for deeper engagement with gas.
“As the world reaches the end of the pandemic tunnel, it will need an energy partner that can help prevent environmental degradation, ensure a stable and uninterrupted supply of energy, and bring affordable and reliable energy for all,” said Yury Sentyurin, Secretary General, GECF at the 7th IEF-IGU Ministerial Gas Forum, hosted virtually by the Government of Malaysia.
The GECF Member Countries are amongst the lowest cost producers globally. They say that natural gas will become the leading source in the global energy mix by mid-century, increasing its share from currently 23 to 28 percent.
Most of the energy ministers speaking at the day-long conference pinpointed Asia as the main demand node for natural gas due to rising populations, environmental pledges, and policies to phase out of coal by some Asian countries.
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Currently coal meets 47 percent of Asia’s energy consumption, while natural gas provides just 12 percent of primary energy consumption in the world’s largest region.
According to the GECF Global Gas Model, ASEAN and East Asia countries’ energy needs will account for around 60 percent of global energy demand increase between today and 2050.
This growth will account for 42 percent of the global gas increments within the outlook period, driven by China, India, emerging markets such as Bangladesh, Pakistan, and a few others in South East Asian countries.
“Increasing Asia’s share of gas energy consumption to 20percent would add the equivalent of more than 400 million tonnes of liquified natural gas (LNG) to annual gas demand, almost doubling the size of the LNG market,” said Tan Sri Muhyiddin Yassin, Prime Minister of Malaysia, in his inaugural address.
Ministers from Nigeria, Egypt, Azerbaijan and Iraq further discussed the opportunities that exist in growing gas markets and various policy pathways to achieve net-zero emissions in two sessions of the meeting.
Timipre Sylva, Nigeria’s Minister of State for Petroleum Resources said: “The UN describes energy as central to nearly every major challenge and opportunity the world faces today. However, around a billion people continue to live without electricity. A further billion struggle for a reliable supply of electricity. A revolution in the global energy system is needed.”
The Buhari-led government has declared 2020 as the year of gas, creating the National Gas Expansion Programme (NGEP), to expand domestic gas supply for industries, homes and in transportation to stimulate demand in-country.
Analyts say it is needs to work harder to fix domestic gas pricing issues which constrains power supply and limits the ability of industries to fully use gas.
The forum members acknowledged that for gas to have tangible impact in the world, it must be able to stimulate economies impacted by COVID-19, help in achieving sustainable development goals and increase energy access for millions.
The ministers shared some good news too. For example Shri Dharmendra Pradhan, India’s Minister of Petroleum & Natural Gas and Steel, said that the demand for natural gas and other energies in the world’s second populous nation has already returned to pre-COVID-19 levels.
