The world is in the midst of an energy transition; however, the complete transition from fossil fuels to renewables won’t be realized anytime soon. Natural gas is expected to replace dirtier fossil fuels through 2050. Yet, there are growing worries about the world’s NatGas supply, especially in the absence of new investments.
To ensure a smooth energy transition, new figures show countries need to spend $7 trillion on new liquefied natural gas (LNG) export plants, upgrading facilities, and developing new gas fields, according to Bloomberg, citing a new report from the Institute of Energy Economics, Japan.
The scenario assumes a 56% reduction in emissions by 2050, as emerging nations will not be able to achieve carbon neutrality by the middle of the century, the report said. If emissions remain at current levels, nearly $10 trillion will be needed to maintain adequate gas supply through mid-century, IEEJ said.
Differing forecasts for gas consumption and ambitious net zero proposals have hampered future planning, the International Gas Union said in a report earlier this week. -Bloomberg