World needs $7 trillion to avoid gas shortage, says Japan think tank
The scenario assumes a 56% reduction in emissions by 2050
Tokyo: The world will need $7 trillion to ensure there is sufficient gas supply through 2050 as nations shift to cleaner energy sources, according to a think tank in Japan.
The investment will be required to build new liquefied natural gas export plants, refurbish existing facilities and develop gas fields, according to the Institute of Energy Economics, Japan.
Read more
- ADIPEC 2023: Global energy system too vast and complex for quick energy transition, says Aramco official
- Consumers can’t be losers in transition away from oil and gas: Al Mazrouei at ADIPEC
- ADIPEC 2023: Energy industry must shed its 'part of the problem' status on climate change, says Dr. Al Jaber
- ADIPEC 2023: Undersupply in oil market a bigger worry, says Al Mazrouei
The scenario assumes a 56 per cent reduction in emissions by 2050, as emerging nations will not be able to achieve carbon neutrality by the middle of the century, the report said. If emissions remain at current levels, nearly $10 trillion will be needed to maintain adequate gas supply through mid-century, IEEJ said.
The International Energy Agency sees gas demand peaking this decade and therefore no new long-lead projects are required. Major producers, including Chevron and Shell, assert that gas will play a long-term role in the energy transition, especially as countries shift away from dirtier coal.