The world needs to invest $7 trillion to guarantee adequate gas supplies until 2050 as nations shift to cleaner energy sources, according to a Japanese research institute.
This investment is essential for constructing new liquefied natural gas export stations, refurbishing existing facilities, and developing gas fields, as reported by the Institute of Energy Economics, Japan (IEEJ).
The report clarified that this scenario presumes a 56% reduction in emissions by 2050 and the inability of emerging countries to achieve carbon neutrality by mid-century.
If emissions remain at current levels, a nearly $10 trillion investment would be needed to maintain sufficient gas supplies until 2050, the IEEJ stated.
Meanwhile, the International Gas Union highlighted in a report earlier this week that varying projections for gas consumption and ambitious net-zero emissions proposals have complicated future planning.
The International Energy Agency believes that gas demand will peak this decade, suggesting there’s no need for long-term new projects.
On the other hand, major producers, including Chevron and Shell, assert that gas will have a long-term role in the energy transition, especially as countries move away from the more polluting coal.
Last month, the Netherlands ceased production at the massive Groningen gas field located in the north of the country, which is the largest gas field in Europe.
This decision comes after the surrounding region experienced increasingly severe earthquakes over the years.
Despite gas extraction operations having been halted in recent years, the Dutch government has kept the site operational due to uncertainties related to the ongoing global energy crisis triggered by Russia’s invasion of Ukraine in February 2022.
Jean Wiegboldus, head of the Groningen Gas Council, a local organization campaigning to assist earthquake victims, told AFP, “Many people in the area are suffering from psychological problems due to gas extraction.”
