Global energy report shows crucial future role for natural gas
Demand for natural gas will continue to grow strongly in Asia over the coming decades, according to the International Energy Agency (IEA)’s new World Energy Outlook 2020.
“This is further evidence of the major role natural gas has to play in the transition to lower emissions,” says Petroleum Exploration and Production Association of New Zealand (PEPANZ) Chief Executive John Carnegie.
“While Covid-19 has seen a temporary decline in demand for all forms of energy, the ‘stated policies’ scenario sees a 30% rise in global natural gas demand by 2040 concentrated in South and East Asia.
“The role of natural gas in the developing world is especially important as it is lower carbon and clean burning, helping improve air quality and replace higher emitting sources like coal.
“Australia is gearing up to become a major exporter of LNG to meet this demand and we have the same potential. This would mean jobs, exports and royalties for New Zealand and lower global emissions at the same time.
“Even under the most ambitious Sustainable Development Scenario, demand for natural gas remains steady and it becomes the equal single biggest source of global energy by 2040 at 23%, along with oil.
“There will be increasing use of oil to make everyday products like medical supplies and plastics, instead of being burnt as fuel. This reinforces why policies should be ‘fuel agnostic’ and focus on emissions rather the fuel source, consistent with the advice of the Interim Climate Change Committee.
“The report also highlights the potential of natural gas to be used with carbon capture storage technology and to produce hydrogen. Offsetting will also be important, given our target is ‘net’ zero emissions and that our society will still need to use oil and gas for many decades to come.
“Here in New Zealand local producers are playing their part by reducing flaring and operational emissions, and ensuring natural gas is used as efficiently as possible.”