‘Gas can accelerate the energy transition today’
At the AIEN International Energy Summit in Bangkok, Thailand, one of the panels took a look at ‘One Year Later – Is Natural Gas Still Relevant to the Energy Evolution’? Natural gas continues to be front and center in the evolution of the global energy portfolio. As countries look to their energy solutions, how does natural gas, particularly LNG, impact the security, affordability and sustainability of a robust energy future?
Moderator Edward Taylor, Partner, A&O Shearman kicked off the discussion with a simple question, reflected in the session’s title: is natural gas still relevant to the energy evolution?
Andrew Kirk, Vice President Origination, LNG, B Grimm believes it is and will continue to play a big role. ‘The issue with renewables capacity and their intermittent nature means we will continue to need natural gas. New technologies such as batteries are still a long way off from being able to supply a full grid load. Renewables are also geographically bespoke and not available to all. They can provide solutions in areas with limited demand but the cost to run a city like Bangkok is so problematic. Many countries will not be able to cope with the cost increase of moving straight to renewables.
Steve Morrell, Senior Vice President, ExxonMobil PNG LNG, agreed with this assessment. ‘The conversation about gas has never been more pertinent. Whether we are talking about emissions, the war in Ukraine, or living standards around the world – gas has its part to play. There are also so many conversations about the rise of Artificial Intelligence. But where is the power coming from to feed these data centres that will play such a large part?
‘Gas can accelerate the energy transition today. We can stop coal today. We can fill the gaps in intermittent renewables today. So, what is holding us back?’
‘We are far enough along the energy transition to separate the aspirational and the unachievable,’ said Andrew. ‘We are hearing these ideological positions where gas is considered unnecessary without having a sensible conversation about alternatives. Moving straight to renewables will create very unstable energy grids that will stifle economic growth.’
With the global population set to grow by 2bn by 2050, Steve believes the responsibility will grow even higher on the energy companies to provide affordable, reliable and sustainable energy, and natural gas will play a large role in this.
‘Gas is well understood and relatively cleaner compared with coal. The infrastructure is there and expanding. There is a lot to be said for the marriage between gas and intermittent renewables. Moving from a well known system to new technology – it isn’t going to happen overnight. We could put more gas into the system. This will help see a 60% reduction in emissions if we replace coal, without even using new technologies.’
‘One of the main problems is how to fill the gaps from renewables,’ Andrew concluded. ‘The answer is gas. The stage is set for a reasoned conversation about gas.’
About AIEN:
The Association of International Energy Negotiators, formerly Association of International Petroleum Negotiators, is an independent not-for-profit professional membership association that supports international energy negotiators around the world enhancing their effectiveness and professionalism in the international energy community. Founded in 1981, AIEN has approximately 2,800 members in more than 110 countries, representing international and national energy companies, governments, law firms and academic institutions.
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