Liquefied natural gas is a destination fuel in the future of energy, playing a major role in the energy transition the world is embarking on, according to Qatargas CEO Khalid bin Khalifa Al Thani.
Speaking at a conference in New Delhi, Al Thani said that natural gas remains the fastest growing fossil fuel globally, benefiting from its flexibility, competitive economics, and low emissions profile.
“Thus, natural gas is called to play a major role in the energy transition, supported by the industrialization and power demand particularly in emerging countries in Asia and Africa, and the continued ‘coal to gas’ switch, especially in India and China,” he said.
Al Thani noted that the energy demand would continue to grow driven by emerging economies and the projected growth in global population, which will touch nine billion by 2040.
LNG demand is expected to increase at an average four percent annually to reach more than 600 million tonnes in 2035 versus 290 million tonnes in 2017. In view of this, more LNG projects are required to cover the existing and projected demand for clean fuels.
He added that Qatar is contributing to this increase of LNG supply through the addition of another 33 million tonnes per annum (Mtpa) to its existing capacity of 77 Mtpa to take the country’s overall production capacity to 110 Mtpa by next decade.
Al Thani further stressed that thanks to its low carbon emission profile, natural gas is the ideal complement to renewables. In countries like India where coal plays a major role (60 percent of energy for power) natural gas is a good substitute for oil.
Since January 2004 Qatargas has delivered over 1,500 cargoes to India’s liquefied natural gas terminals.