World needs $7 trillion to avoid gas shortage, says Japan think tank

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.

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.