BAKU, Azerbaijan, Nov.13
By Leman Zeynalova – Trend:
Some 200 bnboe of new gas resource developments to meet demand through to 2040, Trend reports with reference to the International Energy Agency (IEA).
“The major contributors will be the US, Russia and China, which, together, currently account for almost half of global gas supply, and Qatar with its additional LNG mega trains. Combined, the ‘Big 4’ will meet 60 percent of global gas demand by 2040,” Wood Mackenzie said.
The company estimates almost $2 trillion of capital is needed to deliver this growth in supply. “We identify 124 bnboe of discovered reserves and a further 44 bnboe of yet-to-find resource, requiring US$1.36 trillion of capital investment to bring onstream. Pre-FID LNG projects will supply 340 Mtpa by 2040, requiring a further US$0.6 trillion of investment.”
“It is worth noting that a 2 °C demand scenario dramatically alters this outlook, with future supply requiring a more modest, though still considerable, US$700 billion of new investment as global gas demand peaks earlier.
Significant further investment will also be required in both midstream and downstream infrastructure to ensure future demand is met. Ensuring access to capital in many developing markets and increasingly complex environmental hurdles in mature markets is likely to present challenges.
Gas will play a critical role in meeting future energy demand. While some gas demand has been permanently lost to Covid-19, we expect consumption to follow a parallel growth path to our pre-pandemic view as the global economy rebuilds.
Current low gas prices are supporting demand growth, prompting pro-gas policies and infrastructure developments as governments and companies look to take advantage. Shifts in contracting terms are also encouraging gas use in Asia, as lower levels of oil indexation reduce gas prices through the medium term compared to historical averages,” said the company.
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