The future of natural gas demand – expert opinions

Whatever the “green” trends in the global energy sector are, natural gas is a transitional fuel in the decarbonization process, and it will remain in this status for at least several decades.

This was the general opinion of the speakers of the Ukraine Gas Investment Congress, held in Kyiv, Kosatka.Media reports.

In particular, the Secretary-General of the European Association of Gas Companies (Eurogas) James Watson said that Europe would increasingly use gas.

“Natural gas will replace oil and coal in heating. There should be no carbon emissions by 2050. And gas is no exception: its consumption will fall by 30%. by 2050. However, the demand for gas is currently growing. And while hydrogen consumption is also growing, the European Commission will decide to declare gas a transitional fuel,” Watson said.

He was supported by Pavlo Stanchak, Deputy General Director for Development and Transformation of the Ukrainian GTS Operator.

“Europe has already accepted that natural gas is a temporary solution. But temporary solutions are often permanent. The gas may be in demand longer than we think,” Stanchak suggested.

Hasan Demirhan, Vice President of BSTDB Banking, notes that the combustion of gas creates a "carbon footprint", and in recent years, projects that generate CO2 emissions are less and less attractive to investors. But gas cannot be completely abandoned.

“Gas is less harmful than other technologies. The harm when using gas is 10 times less than when using coal,” explained Demirhan.

According to Vitali Radchenko, partner of CMS Cameron McKenna (Energy & Projects), gas will be a transitional fuel for several decades.

“There are three ways: to produce more gas, consume less gas, or switch to some other fuel. To increase production, Ukraine can use new technologies and "rediscover" old wells. Give them to investors, they can increase the production. At the same time, do not take anything from them. This will be a beneficial situation for the state and investors,” Radchenko said.

Olha Bielkova, Head of International Affairs and Government Relations of the Ukrainian GTS Operator, recalled that natural gas was a prerequisite for ensuring any decarbonization processes. For Ukraine, it will be one of the main types of fuel for a long time to come.

“The dream of a complete gas replacement, let’s say, in 5 years, is unrealistic. We have cold winters, high gas consumption by industry. But we have realistic approaches to decarbonization. For example, we are talking about biomethane, the Verkhovna Rada adopted a law that makes it easier to use,” Bielkova said.

Tags: gas, hydrocarbon production, gas production, ecology, decarbonisation, carbon neutrality

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