International

Global Industry Requires $7 Trillion to Prevent Gas Shortages

A Japanese think tank has stated that an investment of $7 trillion is necessary to build new LNG plants and develop gas fields, in order to ensure sufficient natural gas supplies and avoid crises until 2050, reported Bloomberg.

The report highlights that this funding will be essential for the construction of new liquefied natural gas (LNG) facilities, expansion of existing plants, and the development of new gas deposits as countries transition from coal to cleaner energy sources.

The Japanese think tank’s forecast assumes a 56% reduction in emissions by the middle of the century. However, if emissions remain at current levels, the IEEJ projects that the world will require nearly $10 trillion to prevent natural gas shortages by 2050.

The International Gas Union (IGU) recently reported that differing perspectives on gas demand in the upcoming years are hindering future planning and causing uncertainty among companies regarding investments in new supplies.

The IGU stated that the lack of investment in natural gas, low-carbon, and renewable gases, along with the unprecedented uncertainty in demand, is jeopardizing the energy transition and undermining energy affordability, security, and sustainability.

Furthermore, the International Energy Agency (IEA) warned earlier this month that global gas markets are entering a new and more uncertain period characterized by slower growth, higher volatility, and a potential peak in global demand by the end of the decade.

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