Friday, October 2, 2020
News
NEWS HOME
»
PRN INDIA
Global Gas Industry Set to Resume Growth Post-Pandemic, Adopt Low-Carbon Technologies for Long-Term Growth
  SocialTwist Tell-a-Friend  
   

Covid-19 will reduce gas use in 2020, but recovery will be underpinned by favourable economics, widening access and a longer-term drive towards emissions reductions, including a role for hydrogen and other green gas technologies

LONDON, BARCELONA, Spain,  and MILAN, Aug. 6, 2020 /PRNewswire/ --  After growing by more than 2% in 2019, global gas use is set to fall by around 4% in 2020, as the Covid-19 pandemic reduces energy consumption across the global economies. However, the resulting low gas prices, as well as clean air and climate policies, will promote further switching to gas from other more polluting energy sources, such as oil and coal. This trend was already underway before the pandemic, thanks to cost-competitive gas in key sectors including power, industry and transport, and major regions including Europe, North America and Asia.

The Global Gas Report 2020, published today by the International Gas Union (IGU), research company BloombergNEF (BNEF) and Snam, the Italian-headquartered international gas infrastructure company reviews key global gas industry developments over the last year, provides a high-level outlook for future gas market developments, and examines the potential of hydrogen as a clean fuel to help meet climate goals.

The report shows that medium-term growth will come from increasing cost-competitiveness and increased global access to gas. A particular growth opportunity exists in liquefied natural gas. LNG imports reached 482 billion cubic meters in 2019, up 13% from 2018, and while this figure is expected to fall by around 4.2% in 2020, it could rebound quickly to previous levels as soon as 2021, depending on the persistence and longevity of the pandemic.

Ample natural gas resources exist to support demand growth, but greater gas infrastructure development is needed to support growth in the medium term. India is planning to almost double the length of its gas transmission grid, while China will grow its gas network about 60% by 2025.

Ashish Sethia, global head of commodities at BNEF, commented: "The pandemic has created disruption in the global energy sector, but low gas prices will ultimately stimulate demand growth as the economy recovers. We have already seen unprecedented coal-to-gas switching in Europe, and clean air policies in major growth markets such as India and China will drive more gas adoption in the next few years."

Joe Kang, President of IGU, said: "This pandemic crisis comes at great cost to the industry, the economy and society at large. It also reminded the world about the value of clean air and healthy environment for wellbeing, providing a unique opportunity to rebuild better. Gas is an abundant, clean, accessible and flexible substitute to more polluting energy sources, and supporting greater fuel switching from coal and oil to gas in the immediate term, while ensuring infrastructure is ready to accommodate progressively greater scale of clean gas technologies in the coming decade, is the way to secure a sustainable and prosperous future."

Low-carbon gas

In the longer term, there are major opportunities to scale up the use of low-carbon gas technologies, but these depend on substantial policy action and infrastructure investment in the coming years. Clean hydrogen could abate up to 37% of energy-related greenhouse gas emissions, according to BNEF estimates. However, this would require a range of meaningful steps, including emissions pricing linked to clear, Paris-aligned long-term climate targets; harmonized standards governing hydrogen use; coordinated strategies regarding regional and global infrastructure roll-out, and the deployment of hydrogen-ready equipment, such as pipelines, gas turbines and end-use appliances.

Jon Moore, CEO of BNEF, said: "It is increasingly clear that the goals of the Paris Agreement cannot be met without a substantial scale-up of clean gas technologies – such as hydrogen. While the economics are challenging today, a joined-up policy approach could unleash the investment needed to bring costs down, develop scalable business models and drive adoption across the hard-to-abate sectors."

The development of an international hydrogen market could also accelerate adoption. The report finds that Germany, which is pursuing rapid development in hydrogen, could procure cost-competitive hydrogen (at about $1/kg) in 2050 from a variety of sources, including via electrolysis from its own domestic renewable power, or via pipeline imports from North Africa or Southern Europe.

Snam CEO Marco AlverĂ  said:  "The hydrogen market is on the verge of a revolution. The goal is to bring down the cost of green hydrogen until it becomes competitive with fossil fuels in many applications in the next five years. A smart way to scale up hydrogen production is blending it with natural gas in existing gas pipelines, something Snam has been testing for two years. We envision a future where clean hydrogen produced in Southern Italy or North Africa can be transported through our pipelines to serve Central and Northern European needs.  While matching supply and demand in the most efficient way, the infrastructure is expected to play a central role in supporting the penetration of hydrogen in the energy mix."

Natural gas in the long term

The report also reviews the long-term outlook for natural gas under different existing scenarios, including those from the International Energy Agency, BNEF and IGU analysis. The IEA's Stated Policies Scenario, from its 2019 World Energy Outlook, envisions gas use growing 1.4% per year to 2040, while BNEF's economics-led New Energy Outlook 2019 foresaw 22% growth in power sector gas demand to 2050.

In contrast, the IEA's Sustainable Development Scenario sees natural gas use declining from the end of the 2020s onward as the global energy demand flattens and the world embraces stronger climate action. And both IGU and BNEF analysis indicate that around one-third of energy-related emissions could be abated by adoption of clean gas technologies. This divergence in outlooks highlights both the risks and the opportunities for the global gas sector in the energy transition – and the importance of actions taken by both industry and government to capture the new opportunities and mitigate the risks for the sector in the coming decades.

About BloombergNEF
BloombergNEF (BNEF) is a leading provider of primary research on clean energy, advanced transport, digital industry, innovative materials, and commodities. With a team of experts spread across six continents, BNEF leverages the world's most sophisticated data sets to create clear perspectives and in-depth forecasts that frame the financial, economic and policy implications of industry-transforming trends and technologies. Available online, on mobile and on the Terminal, BNEF is powered by Bloomberg's global network of 19,000 employees in 176 locations, reporting 5,000 news stories a day. Visit  https://about.bnef.com/  or  request more information.

About IGU
The International Gas Union is the global voice of gas, representing over 95% of the gas industry worldwide, in 85 countries, across all 5 continents.  Its mission is to advocate for the social, technical, and economic progress of the global gas industry.  The IGU works to improve the competitiveness of gas in the world energy markets by promoting transparency, public endorsement, and the removal of barriers to progress, innovation, access, and development. To achieve this, the IGU also often collaborates with other industry partners, public agencies, and multilateral organisations.

The IGU is committed to a sustainable future, which will require  a wide spectrum of clean energy technologies including gas, a critical  tool for the world to meet climate goals and deliver on the Sustainable Development agenda.

About Snam
Snam is one of the world's leading energy infrastructure operators and one of the largest Italian listed companies in terms of market capitalization. Through its international subsidiaries, it operates in Albania, Austria, China, France, Greece, the UAE and UK. The company has the largest natural gas transmission network and storage capacity among European peers and is also one of the main operators in regasification. As part of a €6.5 billion plan to 2023, Snam invests €1.4 bn in the SnamTec project, focused on innovation and new energy transition businesses, from sustainable mobility to biomethane and energy efficiency. Snam also aims to enable and promote the development of hydrogen to foster decarbonisation in the energy sector and industries. For more information, visit snam.it.

More News by PR Newswire India

PolyU launches the first dedicated interdisciplinary master programme in medical physics to nurture future clinical and academic talents in the field

New NCCN Resource for Understanding Childhood Leukemia

104 episodes of animated series Dabangg from Cosmos-Maya to launch on Disney+ Hotstar VIP

Blue Blocks Montessori School files a record 5 patents for student Inventions in Drones

Nuvoco launches 'Artiste Signature Collection' in association with Gauri Khan Designs and International Designs

Resilient Cities Network focuses its new city-led entity on strengthening cities capacity to recover from COVID-19 and build a safe and equitable world

Frost & Sullivan Recognizes Xenex with 2020 Global Company of the Year Award; LightStrike Robots Dominate Healthcare Room Disinfection Devices Market

Three corporate stalwarts; Sanjay Kaul ex Country Head Apple India, Ajay Kaul ex CEO - Jubilant Food Works, India, Mukesh Kachroo ex CTO - Gain Capital, USA set to launch a Digital Platform to Preserve and Promote Kashmiri Pandit Culture

Johnson & Johnson Initiates Pivotal Global Phase 3 Clinical Trial of Janssen's COVID-19 Vaccine Candidate

QS Business Masters Rankings 2021 - Revealed: the specializations most in-demand among employers around the world

OrbusNeich® Announces China Approval for COMBO® Coronary Stent

Former HSBC Group COO Andy Maguire joins Thought Machine as new Chair

FDI World Dental Federation and Smile Train: Children with clefts are at high risk for tooth decay, gum disease and other serious oral health concerns

LONGi wins first order to supply 103 MW of Hi-MO 5 modules for TBEA's production base in Xinjiang

Clarivate Reveals 2020 Citation Laureates - Annual List of Researchers of Nobel Class

iHerb Meeting Increased Worldwide Demand for Vitamin D and C

"Jim Murray's Whisky Bible 2021" Matsui Whisky awarded "Best Japanese Single Cask Of The Year 2021"

Next-generation Wireless Business Support Systems to Enhance Digital Efficiency for Communication Service Providers

Lebenor Launches Halcove Touch Free Buttons to make Elevators safe to travel

Annova Solutions Helping Client's Journey with Dedicated Teams Working on Industry-specific Labels

 
 
TRENDING TOPICS
 
 
CITY NEWS
MORE CITIES
 
 
INDIA WORLD ASIA
SC: How can court give direction to WHO,...
Shocking, say Muslim leaders on Babri de...
EC team visits Patna to observe Bihar po...
IDFC First Bank MD gifts Rs 30-lakh shar...
Pak violates ceasefire on LoC for 7th st...
JD-S leader Kumaraswamy claims PM Modi o...
More...    
 
 Top Stories
Serverless Amazon Timestream databa... 
SC notice on PIL by seafarers for t... 
'Better off households in J'khand b... 
NCPCR takes cognizance of sexual as... 
Delhi's air quality to turn 'poor' ... 
LG tipped to deliver best Q3 earnin... 
Detention of Rahul, Priyanka illega... 
BharatPe aims Rs 1,000cr in loan di...