By Ndubuisi Micheal Obineme
The global energy industry is set for growth in this era of energy transition, underscoring the need for pragmatic approach towards energy security. Several reports have emerged showing that global energy demand will continue to increase drastically due to the population growth rate, and the world needs more energy to complement the global population growth to meet the growing energy demand.
According to published reports, three-quarters of a billion people in the developing nations are suffering from energy poverty as they have no access to electricity and nearly 2.5 billion people have no clean cooking solutions. Energy poverty stands as an obstacle to energy transition, which requires radical action from the government and private sector to strengthen the global energy sector to resolve issues around energy poverty in developing nations. Some stakeholders are also advocating for a just energy transition tailored to the current realities in the energy sector and unique challenges for energy accessibility in developing nations.
This feature story provides analyses about the role of natural gas in filling the gap in global energy demand and supply, coupled with strategic recommendations from industry experts and stakeholders about gas prospects in driving the energy transition towards a low-carbon future.
State of Global Energy Investment
In its 2024 annual report titled, ‘World Energy Investment Report’, the International Energy Agency (IEA) acknowledged that global energy investment is set to exceed $3 trillion USD for the first time in 2024, with $2 trillion USD going to clean energy technologies and infrastructure. In contrast, upstream oil and gas investment is expected to increase by 7% in 2024 to reach $570 billion USD, following a 9% rise in 2023. This is being led by the Middle East and Asian NOCs, as they increased their investments in oil and gas by over 50% since 2017, which accounts for almost the entire rise in spending for 2023-2024.
According to the IEA report, the world’s renewable power capacity is expected to surge over the rest of this decade, with global additions progressing to reach the current power capacity of China, the European Union, India, and the United States combined.
In the report, IEA stated that over 5,500 gigawatts (GW) of new renewable energy capacity will be installed between 2024 and 2030 – almost three times the increase seen between 2017 and 2023.
China will account for almost 60% of all renewable capacity installed worldwide between 2024 and 2030, the IEA report revealed. This would also make China home to nearly half of the world’s total renewable power capacity by the end of this decade.
“While China is adding the biggest volumes of renewables, India is growing at the fastest rate among major economies.
“In terms of technologies, solar PV alone is forecasted to account for a massive 80% of the growth in global renewable capacity between now and 2030.
“The wind sector is also poised for a recovery, with the rate of expansion doubling between 2024 and 2030. By the end of this decade, the share of wind and solar PV alone in global electricity generation is set to double to 30%.
“As a result of these trends, nearly 70 countries that collectively account for 80% of global renewable power capacity are poised to reach or surpass their current renewable ambitions for 2030,” the IEA report added.
Despite the progress made in the renewable energy sector, the IEA noted that there are only very few countries that have explicitly laid out their 2030 targets for installed renewable energy capacity in their existing Nationally Determined Contributions, also known as NDCs, under the Paris Agreement.
IEA analysis indicates that the official commitments in NDCs currently amount to 1,300 gigawatts (GW) – just 12% of what is required to meet the global tripling renewable energy capacity objective agreed upon at COP28 in Dubai, UAE.
“To fully meet the tripling target is entirely possible if governments take near-term opportunities for action. This includes outlining bold plans in the next round of Nationally Determined Contributions under the Paris Agreement due next year, and bolstering international cooperation on bringing down high financing costs in emerging and developing economies, which are restraining renewables’ growth in high-potential regions such as Africa and Southeast Asia,” IEA wrote.
Other challenges hindering the expansion of renewable energy capacity across the world, according to the IEA report, include long wait times for project permits, insufficient grid infrastructure investment, the requirement to integrate variable renewables quickly and economically, and high financing costs particularly in emerging and developing economies, etc.
While investments in clean energy (renewable energy) have doubled almost twice, industry experts have said that accelerating the renewables-based transition to meet the growing energy demand is far from being on track, and the world needs more energies to address issues around energy access in the developing nations as well as mitigate disruptions caused by geopolitical shocks, extreme weather events, and supply chain challenges.
Energy Transition Narrative
The World Energy Council (WEC) published a report titled, “Redesigning Energy in 5D”, featuring the collective expertise and perspectives of nearly 1,800 energy leaders in over 100 countries. The report underscores the need to redesign the global energy system to focus more on people’s needs. WEC’s report outlined the importance of 5Ds -decarbonization initiatives, digitalization plans, demand-side disruption, energy source diversification, and a more decentralized approach to energy systems, which are the key drivers that will influence the energy transition.
Angela Wilkinson, Secretary-General and CEO of the World Energy Council, said that the discussions on energy transition should be centralized on meeting the growing energy demand of people across diverse communities.
According to her, the word ‘energy transition’ has become “one of the most frequently-used, politically-loaded and polarizing phrases of recent years”
“We also know that today’s energy systems are not fit for purpose. The urgency to secure more energy for sustainable development and to decarbonize all energy uses, not just supplies, is crystal clear,” Wilkinson said at the 26th World Energy Congress, adding that, “There is no one-size-fits-all solution for energy transition. No quick and easy fix. Complex coordination challenges cannot be ignored or resolved, even with AI or other technology innovations.”
She maintained that there is no single energy transition and no world energy system.
“There are energy transitions from different starting points and situations and a variety of regional visions where the direction of travel is clear. But how to get there requires multiple pathways because what got us ‘here’ will not get us where we want to go.”
She said ‘consumer trust and engagement’ are two crucial pillars which the energy transitions should be built upon.
“It’s about user-first. What are the needs of people and industry? And what does that mean for supply and finance?”
Speaking about finance, she said that while money talks, it doesn’t walk the last mile to get vital projects over the line: “The technology that wins is the technology that scales… but it’s not finance bringing that scale: it’s the pull of social demand. We have to engage with that pull of social transformation.
“We have to bear in mind that it’s not just about technology and money — it’s also about people and wider and wiser use of energy. Meanwhile, mother nature is reshuffling the deck and we have to manage climate adaptation with mitigation,” Wilkinson said in an exclusive interview with Jakarta Globe’s sister publication Investor Daily TV on the sidelines of the Abu Dhabi International Petroleum Exhibition & Conference also known as ADIPEC.
“We need to get away from the supply-centric conversation and start to engage energy users in a conversation and need to know how energy fits into their lives,” Wilkinson explained.
“So, what are the changes in the narrative? It’s to move away from a ‘one size fits all’ approach to understanding that we have to lead and learn with the diverse regions as we move forward with multiple pathways.
“We have plenty of energy and plenty of money. The challenge is to get them to flow to the places where they’re most needed and will do most good,” she added.
The Role of Natural Gas
Natural gas is classified as a clean burning fossil fuel due to its lower carbon footprint compared to other traditional energy sources. Its flexibility of use also enables it to integrate effectively with renewables. According to a report, one-fifth of the world’s energy used today comes from natural gas. Gas is used in heating our homes, shopping malls, and offices, fuelling paper and steel mills, powering glass, food, and metal factories, providing feedstock for fertilizer plants, and generating electricity, among others.
During the global energy crisis in 2022 triggered by Russia’s invasion of Ukraine, gas and LNG played a key role in securing the global energy security, especially in Europe. The natural gas commodities ultimately saved the day, supporting Europe’s energy security and assisting the continent to make it through the 2022 winter without experiencing a blackout.
A report published by S&P Global expert, Michael Stoppard, noted that meeting the challenges of climate change is becoming ever more urgent.
“Natural gas can make a major positive contribution by leveraging existing energy infrastructure and an existing scaled supply chain.
“Hence the immediate push of natural gas can help achieve fast decarbonization by accelerating the phaseout of coal with a proven alternative technology. This can be done in tandem with deploying and developing lower-carbon renewable energy and other enabling technologies.
“What role should natural gas play in the energy transition?,” Stoppard commented in its report, stating that, “The UN’s annual climate change conference (COP28), held in the United Arab Emirates in 2023, concluded with a call to “transition away from fossil fuels.” But not all fossil fuels are born equal. Any concerted action to reduce greenhouse gas emissions is likely to mean efforts to reduce oil and coal consumption as soon and as much as reasonably possible.”
He said, “For natural gas – the fossil fuel with the lowest GHG footprint – the arguments are more complex. The option exists to transition away from either coal or oil toward natural gas. This brings quick and significant near-term benefits in reduced emissions but does not reach the desired long-term goal of net zero. As a result, the adoption of natural gas often sets idealists against pragmatists.”
“Renewable energy alone cannot scale up quickly enough to take the early action that is essential.
“Developing low-carbon gases and making existing infrastructure suitable for conversion can achieve deep decarbonization in the longer term, which will also provide a pathway to net-zero.”
He recommended a two-pronged approach that sees gas infrastructure working together with electrification needs to be part of the global environmental policy toolkit.
He explained that the CCS is a proven technology that has the potential to remove 90%-95% of emissions if properly operated.
“Its application to date has been mainly in oil and gas production, linked to enhanced oil recovery or gas processing associated with LNG facilities,” Stoppard explained, noting that, “In future, CCUS will need to be deployed at a much greater scale downstream in industrial clusters or hubs. The principal applications of CCUS will be in “hard-to-decarbonize” factories, such as those processing steel, cement, glass, and fertilizer. These sectors typically use natural gas.”
S&P Global also forecasted that carbon capture will increase to 1.5 gigatons-6 gigatons per year by 2050, over 30 times higher than used today.
In its report, Stoppard narrated that natural gas has the potential to support the production of renewable power, hydrogen, and enhance air quality if used efficiently.
He also noted that natural gas would also help push forward sustainability, and decarbonization, which can be used for coal and oil substitution as well.
According to Stoppard’s report, coal is responsible for 43% of global energy-related GHG emissions.
“Coal-to-gas substitution would be the biggest near-term opportunity.
“Replacing older and less efficient coal plants with best-in-class natural gas generation will reduce emissions by more than 50% per unit of electricity,” he explained.
In addition, Stoppard also stated that the production of ammonia and methanol provides another opportunity to replace coal with natural gas.
“Ammonia is a key input in the production of many fertilizers and can also be co-fired with coal in power stations to reduce overall coal burn,” he said.
“Most of the ammonia and methanol produced comes from natural gas, but coal is also used, primarily in China. In the steel sector, metallurgical coal could be substituted by natural gas using direct reduced iron technology.
“There is also scope for natural gas to replace oil. The main opportunity in stationary facilities is the 1.6 million barrels per day of oil used to generate power in the Middle East.
“Another critical area is the rollout of electric vehicles. Although the vision is to power EVs with low-carbon sources of generation, in practice, natural gas will be needed at least at the margin as electricity demand booms.
“Using gas-fired power to help meet power demand from EVs is a form of oil-to-gas substitution.
“Natural gas could also have an important role to play in medium or heavy-duty vehicles and shipping, either in the form of compressed natural gas or as methanol or ammonia.”
For renewable power generation, Stoppard acknowledged that wind and solar are key drivers for renewable power in this era of energy transition, but they still need backup.
He added, “Thermal generation will most likely be required to help renewable power manage long-duration storage needs.
“Today’s planning horizon, which will determine energy infrastructure for the coming decade, contains few alternatives, and gas-fired power is the principal option.
“Every unit increase in renewable power is likely to be accompanied by some form of dispatchable generation. This support is sometimes called a backup to renewables, but that term can be misleading since the backup often provides more power than the primary source.
“Hydrogen — or one of its derivatives, such as ammonia — is now widely recognized as a key component of decarbonization.
“Some net-zero projections show hydrogen accounting for as much as 25% of energy end-use by 2050. So-called green hydrogen generated from renewable power via electrolysis will also feature.
“Given limitations in developing sufficient renewable capacity to meet both strongly growing direct power demand and a new appetite for hydrogen, blue hydrogen produced using natural gas is expected to play a significant role.”
Adding to this, Andrea Stegher, International Gas Union (IGU) Vice President, said gas and renewables can enable net-zero pathways, energy security, and access issues.
Stegher made this known while delivering a keynote address on the topic, “The Role of Natural Gas and Biomethane in the Fair, Affordable and Sustainable Energy Transition”, at this year’s G20 summit held in Brazil.
He said, “The path to global and regional prosperity, net zero, climate and energy aspirations go through gas. Natural gas and its evolving technologies support the renewable energy supply by overcoming intermittency and instability.
He stated that Brazil is a great example of how important a diversified and complimentary energy mix is necessary to achieve the global goal of net zero, noting that the country is playing a leading role in promoting a just, secure, and accessible energy transition.
“Brazil has the most precious ecosystem in the world, the Amazon, rightly called the lung of our planet.
“The global gas industry is perfectly positioned to ensure that emission reductions can be easily achieved so that this lung can continue to breathe for all of us.
“Gas is essential to human progress and global growth as the world is navigating existential industrial, energy, financial, and political uncertainties.”
Stegher called for continuous innovation in the gas sector, stating that green gases and carbon capture, utilization, and storage (CCUS) projects are fundamental in supporting the energy transition.
Meanwhile, at COP 29 in Baku, the President of the International Gas Union (IGU), Madam Yalan Li, outlined two key factors that are very important points for the global gas industry in tackling methane emissions.
She said financing renewable gases and deploying meaningful actions for the abatement of the industry’s methane emissions are key factors for the global gas sector.
In her remarks, Madam Li also outlined three critically important aspects for a successful and rapid global uptake of renewable gases.
Madam Li underscored the need to promote policies on the development of renewable gases to incentivize production, usage, and grid-connectedness as well as invest in research and innovation, support cutting-edge research to drive down costs, improve efficiency, and develop renewable gas technologies.
She also highlighted the importance of facilitating financing instruments and the promotion of public and private investments in renewable gas projects through innovative financing mechanisms.
In her Welcome remarks for the “Active Actions on Methane Emission Control”, Madam Li argued that reducing methane emission is a fast, effective, and cost-effective way to mitigate climate change, and she reiterated IGU’s belief that high ambition and strong actions in reducing methane emissions are keys to maximizing the commercial and environmental value of gas.
The State of Global Gas Sector
The global demand for natural gas is building momentum, with several positive projections in 2024 and beyond, but supply challenges persist.
The International Energy Agency (IEA) has also forecasted that the demand for gas is expected to grow by more than 2.5% in 2024, with similar growth expected in 2025.
Furthermore, the Gas Exporting Countries Forum (GECF) Global Gas Outlook 2050 latest report reveals a significant surge in global natural gas trade, expected to account for over one-third of global gas demand by 2050.
The GECF report also outlined that LNG trade is set to increase more than double by 2050, surpassing long-distance pipeline trade, thereby enhancing integration, flexibility, and efficiency in natural gas markets.
According to the GECF report, the majority of natural gas production by 2050 is expected to come from new projects and undiscovered resources, which require significant investments exceeding US$9 trillion to meet global demand.
“Natural gas is a key player in energy transitions. It emerges as a crucial partner in facilitating just, orderly,
and equitable energy transitions.
“Its clean burning properties make it a sustainable alternative to traditional biomass, contributing to improved air quality, reduced emissions, and global food security.
“Investing in natural gas becomes imperative to address the trilemma of affordability, security, and sustainability,” the GECF report stated.
In a similar report titled, ‘2024 Global Gas Report (GGR)’, released by the International Gas Union (IGU), and Rystad Energy, at the 2024 ONS Conference, they forecasted that a 22% global gas supply shortfall is expected by 2030 due to underinvestment despite the growth opportunities forecasted for the global gas sector in the coming years.
They said the underinvestment in gas and clean energy would jeopardize global energy supply, with 2030 energy targets visibly out of reach.
In a press statement obtained by The Energy Republic, IGU confirmed that the global gas market is currently in fragile equilibrium, with limited supply growth as demand rises steadily, up by 1.5% in 2023, with an expected acceleration to 2.1% by the end of 2024.
IGU stated that Asia continues to be the key engine of this growth, while North America and the Middle East are in the lead on the exports side.
“Should gas demand continue to grow as in the last 4 years, without additional production development, a 22% global supply shortfall is expected by 2030,” IGU said in the press statement, saying that, “If demand continues to strengthen, the shortfall will be more pronounced. This underscores the urgent need to scale up investments.”
“If current energy demand and supply trends persist, 2030 targets outlined in policy-driven decarbonization scenarios will most likely be missed.
“Europe has experienced energy demand growth.
“In North America, energy demand has surpassed 2019 levels and continues to climb, fuelled by the transport sector and AI data centers.
“Asia’s demand is also surging, particularly in the industrial sectors of India and China.
“Meanwhile, Africa’s energy demand is growing faster than in most regions, driven by urban development, though it still falls short of the levels required for full energy access, as equitable electricity access remains a significant challenge in Africa and parts of South America.
“To contain the growth of greenhouse gas emissions and to make global gas market equilibrium resilient, it is critical to both enhance investment in natural gas supply and scale up biomethane, carbon capture and storage (CCS), and low-carbon hydrogen technologies.
“Natural gas today provides an immediate opportunity to cut emissions from coal by 50% and from oil by 30% through cost-effective switching.
“Biomethane is a direct substitution for natural gas. Today, its scale is significantly below potential at roughly 1% of the natural gas market, and it is primarily produced in North America and Europe. However, new centers of production are emerging in hubs like China and India.
“CO2 capture capacity, a crucial technology for a successful energy transition, is also gaining momentum, but its scale is still far below what is needed, same as for biomethane and low-carbon hydrogen. These technologies will play a critical role in decarbonizing the energy supply (especially in hard-to-abate sectors) and ensuring its resilience. Scaling them is essential, and this requires urgent investment and enabling policies to start building the growing volumes of project proposals,” IGU said in the press statement.
In her words, IGU President, Mme Li Yalan, commented, “Energy and gas demand continue to grow, driven by improving living standards in the developing world, new demand trends, and ongoing growth in developed regions. We must look for a realistic way to balance these trends with long-term sustainability goals, such as building a diversified energy system, and comprehensive approaches to tackle climate change. Embracing innovative solutions and flexible policies will be key to navigating this highly uncertain energy landscape.”
Snam CEO, Stefano Venier, said, “The energy transition represents a unique challenge for mankind. A journey that will not be linear, marked by great aspirations and many hurdles, from geopolitical tensions to technology disruptions and unforeseeable global economic developments. In this continuously evolving transformation, natural gas and related infrastructure represent a critical element of sustainable resiliency for the global energy system, while new green and low carbon molecules will play an essential role to achieve a just and technologically neutral transition.”
Rystad Energy CEO, Jarand Rystad, added, “Natural gas, now 30% of the fossil fuel mix, is cheaper and cleaner than oil and coal, with emissions significantly lower than both. As global LNG access expands, natural gas is on track to surpass coal by 2030 and oil by 2050. We’re proud to support IGU and Snam in detailing these key market trends and the future trajectory of natural gas.”
Strategic Recommendations
While Asia has been projected to be a prominent hudspot for global gas demand growth opportunities, Paul Everingham, Chief Executive Officer (CEO) of Asia Natural Gas and Energy Association (ANGEA) said that the increasing demand for gas in Asia will be driven by Southeast Asian economies such as Indonesia, Malaysia, the Philippines and Vietnam, all of which are seeking to reduce coal use in power generation.
Paul made this known in a media chat with The Energy Republic, noting that there will also be significant demand growth from India, primarily for industrial use.
“Asia’s ability to access more gas over the next 30 years will be critical to the region’s energy security and energy transition and, in turn, its ability to reduce emissions,” he said.
“Meeting this growing demand will require not only more gas production within the region but increased LNG production from diversified sources around the world. This means continued production from established energy trading partners like the US, Australia, and the Middle East, ongoing expansion from emerging exporting nations in Africa and Latin America, and new supply from pending market entrants such as Canada.
“Publicly available energy plans from emerging Asia clearly show that governments in the region want to use gas and LNG to reduce their current reliance on coal. What they need are firm signals from gas-exporting countries that there will be sufficient supply available in the future to ensure LNG remains affordable.
“With this assurance, nations in emerging Asia will have the confidence to invest the many billions of dollars required to construct LNG import infrastructure and gas-fired power plants that can meet their energy needs through coming decades,” he added.
The Energy Republic also made a similar publication in 2023 on how gas and LNG are demonstrating essential value as a flexible, reliable, available energy source in this unprecedented time, with emphasis on the significance of adopting a diversified energy system across the energy value chain to address issues on Energy Security, Affordability, and Sustainability. The publication underscored the need for a diverse energy mix to produce the much-needed energy for the people, especially in developing nations across the world.
Speaking in a media chat with The Energy Republic recently, The National Gas Company of Trinidad and Tobago Limited (NGC) provided insight into how natural gas is paving the way for a sustainable energy future in Trinidad and Tobago and the Caribbean region as well as the role of NGC in contributing to this development.
The company said, “While sustainable energy has well-defined financial, social, environmental, and economic benefits, the region faces significant challenges in making a transition to renewables. Not all energy transitions look the same – one size does NOT fit all.
“Small Caribbean islands cannot adopt wholesale a standardised model of transition to renewables, as they all have different geographical characteristics and economic circumstances.
“Moreover, the need for dispatchable power and consistently supplied and stable energy at night, along with the cost of new infrastructure and technical capability/capacity issues, limits the economic viability of renewable power generation.
“While some countries can potentially utilize continuous renewables such as geothermal energy or hydropower, not all countries have that advantage.
“This is where natural gas as LNG comes in.
“Caribbean countries wishing to eliminate the use of heavy fuel oil and diesel, but lack options such as geothermal
and hydropower can choose natural gas as LNG to achieve lower emissions and cleaner power.
“Using LNG can extend the life of existing infrastructure at affordable and (through contracts) predictable costs. Moreover, LNG does not present the storage challenges of non-dispatchable energy sources.
“Trinidad and Tobago is uniquely poised by virtue of its location and infrastructure to continue to export LNG to both large markets, and eventually, to small-scale markets. NGC has been exploring the feasibility of micro and small-scale LNG projects in the Caribbean for some years because the company believes there are real and valuable opportunities in that space. Through different partnerships and agreements, the company is working assiduously to bring such projects to fruition, and potentially expand the use of LNG across the region.”
At the Gastech 2024 Conference in Houston, industry stakeholders, and players also reiterated the crucial role of natural gas in supporting the global energy sector growth opportunities.
They called for a strategic approach to reinforce the global gas sector as well as support investment in project development to boost gas supply deliverables across the world.
Beyond investments, stakeholders noted that the other challenges affecting the gas and LNG market also include clarity and uncertainty on regulations including policy development to support the gas sector, coupled with decarbonization frameworks. They said this issue creates complexity in terms of gas supply deliverables and the affordability of natural gas commodities.
Gastech 2024 had pivotal discussions across the gas value chain, emphasizing great enthusiasm for gas and LNG as the fuel of choice through the next two decades and beyond. It also requires radical action from the government and private sector to strengthen the global energy sector by adopting gas as a transition fuel to resolve issues around energy poverty in developing nations. Natural gas creates several opportunities to produce more energy across the value chain to meet the growing energy demand.
Nigeria’s Energy Transition Journey
The Nigerian government has committed to achieving net-zero emissions by 2060, incorporating gas as a transition fuel in its Energy Transition Plan. Nigeria’s Energy Transition Plan (ETP) recognizes the role Natural Gas must play as a transition fuel on the path to net zero.
In 2021, the Nigerian government launched the ‘Decade of Gas’ initiative, which aims to transform Nigeria into a gas-powered economy by 2030 through a series of policy reforms, infrastructure development, and investment attraction strategies.
Commenting on gas as Nigeria’s energy transition fuel, Ed Ubong, Coordinating Director, Decade of Gas Initiative said, “Nigeria has been heavily dependent on oil, but the global energy landscape is fast changing with the effects of climate change. The global energy transition agenda aims to adopt clean energy and has catapulted gas into the limelight.
“Natural gas represents a pragmatic solution for Nigeria. It provides a cleaner, more efficient, and readily available source of energy supply to bridge the gap between fossil fuels and renewables.
“With an estimated over 206 trillion cubic feet, Nigeria is regarded as the largest holder of gas reserves in Africa and 9th in the world. These reserves are not only a national asset but a global one, as they provide the foundation for energy security, industrialization, and economic growth.”
In his words, Ubong stated that the Decade of Gas initiative stands as a blueprint for transformation in Nigeria, noting that the Federal Government and the Private Sector through the Decade of Gas initiative are concerted efforts to leverage the country’s abundant natural gas resources for economic development and energy transition with a view of powering the country into development and economic growth over the next decade, anchoring on energy sufficiency, industrialization, and economic prosperity.
Ubong highlighted that Nigeria has struggled with energy scarcity for years, and it has reduced the quality of life for millions of Nigerians.
“By focusing on gas as a source of our power generation, we can attain energy sufficiency. There is a dire need for investment in gas pipelines and gas-fired power plants, which can help to herald the country’s electrical generation capacity, cut energy costs, and make electricity supplies more reliable to households, businesses, and industries.
“Gas is not just a fuel; it is also an industrial feedstock. The industrialization of Nigeria lies solely in creating a robust domestic gas market for the sustenance of industries like petrochemical plants, fertilizer plants, and manufacturing plants. By using gas as an engine for industrialization, we will attract new investments, create jobs, and see a diversified economy away from our dependence on crude oil. The role of governments, the private sector, and the media is critical in actualizing this vision through partnership, innovation, and investment in gas-related projects.
“The multiplier effect of developing our gas resources is immense, and it ranges from the direct jobs to be created in the energy sector to the indirect benefits that will accrue to industries dependent on relatively cheap or affordable energy.
“Gas will lead to rapid economic growth and an increase in the standard of living of Nigerians. Additionally, is its export potential, especially in the form of liquefied natural gas, which will give Nigeria a chance at useful foreign exchange as well as strengthen our foreign reserves and reduce budget deficits,” he added.
Multiplier Effect of Trump’s Presidency in America’s Natural Gas Sector
Speaking in a media chat with The Energy Republic, Ernie Miller, CEO of Verde Clean Fuels
acknowledged Donald Trump’s emergence as US President-Elect would lead to increased domestic oil production, so the need to do something useful with the natural gas that accompanies oil becomes acute.
“President-elect Trump’s pick for energy secretary, Chris Wright, fully understands the importance of natural gas given his long history as a pioneer in this industry,” Miller stated.
“We believe the administration will continue investing in infrastructure by increasing export facilities and storage terminals and expanding pipelines while making the regulatory environment more friendly and navigable to enable rapid permitting and encourage investment. Negotiating favorable trade agreements will also enable more LNG exports.”
Speaking further, Miller explained that natural gas is an essential part of America’s journey to transition to a low-carbon future.
He said gas is a much cleaner fossil fuel compared to coal or oil, and it’s also relatively abundant, inexpensive, and reliable.
According to him, “gas is being looked at as the best option – solar and wind power are too intermittent – to provide energy for the data centers that technology companies need to build to power the ‘AI revolution.’
“But natural gas is not without its issue – methane, which is considered to be one of the worst of the greenhouse gases. Since natural gas is a byproduct of oil drilling, a sizable portion of natural gas is stranded or flared because it is either too remote to be useful or otherwise economically unviable,” Miller noted. “That’s where technology can play a vital role.”
“Verde Clean Fuels’ technology takes that natural gas and turns it into gasoline – a win-win for corporations, consumers, and the environment.
“Verde is partnering with oil and gas producers to help mitigate stranded natural gas and enable companies to transform this underutilized energy stream into a marketable product.”