Gas Processing & LNG is Produced by Gulf Publishing Holdings LLC



Natural gas here to stay beyond energy transition, Big Oil says

LONDON (Reuters) - Energy companies are betting demand for natural gas will rise at break-neck pace for decades, undermining warnings that tackling climate change would require a rapid switch to renewable energy.

Chart (4)
SOURCE: EWA

Top oil companies including Royal Dutch Shell, BP and Total are adapting with growing urgency to the need to develop cleaner energy sources, investing more and more in solar and wind power, electric vehicle technology and even forestation.

Still, they see oil, and especially natural gas, the least polluting fossil fuel, playing a major role throughout the decades of transition and beyond as demand for electricity and plastics grows.

“Shell’s core business is, and will be for the foreseeable future, very much in oil and gas… and particularly in natural gas,” Shell Chief Executive Officer Ben van Beurden said in a speech at the Oil & Money conference.

By 2035, Shell expects global gas demand to grow annually by 2 percent, twice the pace of worldwide energy demand, van Beurden said.

The United Nations said in a report earlier this week that limiting the Earth’s temperature rise to 1.5 degrees Celsius means making rapid, unprecedented changes in the way people use energy.

That will include the tripling of renewable energy to supply 70-85 percent of electricity by 2050.

Technology to capture and store carbon emissions would further reduce the share of gas-fired power to 8 percent, the report said, while making no mention of oil in this context.

It is unclear how the global economy will reach such goals.

Natural gas is today around 22 percent in the global energy mix. But many energy company executives prefer to see it as part of the shift to low-carbon economies.

Qatar, one of the world’s largest gas suppliers, is set to grow its liquefied natural gas (LNG) capacity by over 40 percent by the next decade to around 110 million tonnes per year, as demand for the super-chilled fuel is set to soar, particularly in fast-growing economies such as China and India.

“We believe that natural gas will continue to play a key role, not as a so-called transition fuel but rather as a destination fuel,” Qatar Petroleum CEO Saad Al Kaabi said.

Shell is investing more than any other of its peers in clean energy, spending $1 billion to $2 billion a year on renewables and low-carbon energy. That compares with a total annual spending budget of $25 billion-$30 billion.

The investments “might even make people think we have gone soft on the future of oil and gas. If they did think that… they would be wrong,” van Beurden said.

Reporting by Ron Bousso; editing by Emelia Sithole-Matarise


Copyright © 2018. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo

FEATURED COLUMNS

Business Trends: Opportunities and risks in the global LNG market
-Michael Hinton
Natural gas use has strongly increased around the globe, supported by higher demand and growing availability of gas.
EWAnalysis: Impact of technology on gas processing plants
-Bob Andrew
The gas processing industry has modernized and embraced technology throughout boom and bust cycles.
Executive Interview: BHGE enhances LNG, process plant services with digital portfolio
-Maria Sferruzza
Maria Sferruzza is President, LNG and Global Services for BHGE’s Turbomachinery and Process Solutions (TPS) business, based in Florence, Italy.
Industry Trends: Five trends shaping the North American gas market to 2030
-Yasmine Zhu
The shale revolution has changed the game for the North American natural gas market over the past decade.


GasPro 2.0: A Webcast Symposium

Register Now

The global LNG industry is becoming increasingly interconnected as grassroots export projects get off the ground. Another technology route for processing gas into fuels—GTL—is attracting renewed attention due to improving economics. Small-scale solutions for both LNG and GTL are at the forefront of new technological developments, while major projects using more conventional technologies continue to start up around the world.

During this webcast, we will focus on LNG, GTL, gas processing technology developments and deployments, operations, small-scale solutions, transportation, trading, distribution, safety, regulatory affairs, business analysis and more.

October 25, 2018 08:30 AM CDT

Register Now

 

Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2018 Gulf Publishing Holdings LLC.