Published: October 23, 2023 6:08 am
Author: RT
The investment is required to build new LNG plants and develop gas fields, a Japanese think tank says
Global industry will need $7 trillion in investment to ensure sufficient natural gas supplies and avoid crises through 2050, Bloomberg reported, citing Japan’s Institute of Energy Economics (IEEJ).
According to the report, the funding will be required to build new liquefied natural gas (LNG) facilities and expand existing plants, and to develop new gas deposits as countries shift from coal to cleaner energy sources.
The forecast by the Japanese think tank assumes a 56% reduction in emissions by the middle of the century. However, in a scenario when emissions stay at current levels by 2050, the world will need almost $10 trillion to avoid natural gas shortages, the IEEJ projects.
Differing outlooks on gas demand in the coming years are hampering future planning, making companies uncertain over investments in new supplies, the International Gas Union (IGU) said in a report earlier this week.
“The unprecedented demand uncertainty and insufficient level of investment in natural gas, low-carbon, and renewable gases are putting the energy transition at risk, undermining energy affordability, security, and sustainability,” the IGU stated.
READ MORE: Xi backs new Russian gas pipeline
Last week, the International Energy Agency (IEA) warned that global gas markets have entered a “new and more uncertain” period that is likely to be characterized by slower growth and higher volatility, and could lead to a peak in global demand by the end of the decade.
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