This 14th issue of the Global Voice of Gas magazine comes shortly after the conclusion of the UN COP28 climate summit in Dubai, which yielded important commitments on accelerating
climate action, and also provided more food for thought for the industry for how to ensure that its work and commitments to being a part of the solution to climate are heard and recognised. [To Download, Scroll Down]
We are coming to the end of another highly turbulent year for the global energy industry, as the world continues struggling to strike a balance on the energy trilemma of security, affordability and sustainability. 2023 is a year of high uncertainty that ends in an unstable equilibrium for the global gas markets.
In this GVG issue we are pleased to feature reflections on the year’s events in gas and what it can mean for the coming years, written by Ian Nathan, Director for Gas and LNG Research at Energy Intelligence. We are also happy to include an interview with Dean Pick, the CEO of Canadian gas cleantech start-up Kinitics, which has developed an electric valve actuator that has the potential to significantly reduce field-level methane emissions – solidifying the now permanent innovation corner feature in the GVG.
We also zoom in on this year’s shifting trade global supply and demand dynamics, which have seen US LNG supplant Russian pipeline supply in Europe, the welcome final investment decisions that were reached during the year on additional production, and the geopolitical risks to energy security that have been demonstrated by the Israel-Hamas conflict.
As gas had come of age as a global commodity and the crisis has reminded the world about the implication that now must be considered in prudently planning for regional and global energy security, it is high period for wise policy choices and longterm horizon planning for a sustainable, stable and prosperous future. Another very timely topic we are happy to include in this issue is a discussion of the importance of carbon markets and measurable emissions pricing by Marie-Louise du Bois, Head of Carbon Pricing for S&P Global Commodity Insights. As discussions about offsets trading and accountability for decarbonisation and net-zero pledges come sharp in focus, this topic is one to know in the energy transition journey.We also recap the significant commitments that the oil and gas sector made at COP28 on tackling their methane emissions – one of the key outcomes of the summit.
We further explore how the US Inflation Reduction Act of last year has helped to galvanise investment in low-carbon technologies, and how this support pares up to equivalent incentives provided by other jursidictions, such as the EU. Another important story in this issue is the outlook for biomethane development in Europe. Proponents of this low-carbon energy source say the 35 bcm by 2030 target set by REPowerEU can be achieved, under the right market conditions and with sufficient policy support that duly values emissions reductions it helps to deliver across the economy.
We then delve into the IGU’s flagship Global Gas Report of 2023, produced in collaboration with Snam and Rystad Energy. The comprehensive analysis of various possible energy futures in different decarbonisation assumption scenarios led to the conclusion that the outlook for gas demand is highly uncertain, and without prudent energy planning that ensures sufficient supply is available ahead of demand curve growth, energy security and affordability will continue to be compromised. The current volume of supply of natural gas in development will not be sufficient to meet demand scenarios that diverge from a 1.5 Degree trajectory after 2030.