In light of the increasing global demand for it, the LNG will further cement its position in the global energy market, as a clean source capable of feeding future economic growth at the lowest cost.
This was the most prominent summary that the speakers came out during a discussion session at the Doha Forum, which dealt with the future of LNG, its ability to meet the continuous global demand for energy, and its extent affected by competition between producing countries and problems of market control.
In his speech, Minister of State for Energy Affairs CEO of Qatar Petroleum Saad bin Sharida Al-Kaabi stressed that liquefied gas is the energy of the future, and not the source of a transitional phase towards renewable energies, and the greatest evidence for this is the increasing global demand for it, especially from East Asian countries such as China and India And a number of emerging markets.
Increasing global demand
This opinion is in line with economic expectations that the global demand for natural gas will continue to grow in the long run, after gas consumption recorded growth of 3% to 4% during the past two years, due to the increase in production and entry of new suppliers.
The Qatari Minister emphasized that the recent explorations enabled Qatar to expand production globally, as it is expected to produce 110 million tons by 2024, up to 127 million tons in 2027, despite the high risks this ambition may face, which can be prepared with tight action plans. With the rest of the local and international partners, in addition to raising investment in developing production infrastructure.
|The Qatari Minister of Energy stressed that liquefied gas is the energy of the future and not the source of a transitional phase towards renewable energies (Al-Jazeera)|
The gas industry has achieved growth during the past years, the amount of LNG exchanged has doubled from the level of 140 billion cubic meters in 2000, to exceed 431 billion in 2018, but the LNG markets are still suffering from problems in pricing and achieving a balance between supply and demand.
And the expansion of markets - especially in China and other developing economies - remains the key word behind the global demand for LNG.
At a time when the global market is witnessing the emergence of new competitors such as the United States of America and Australia, Qatar is rapidly strengthening its capabilities to increase supply ratios to different markets, including Europe, but the fear of oversupply or affecting Russia's exports to Europe has taken part in the session's discussions.
In this regard, the Qatari minister played down such concerns and pointed out that his country does not see itself as a competitor to another country, and therefore will continue to secure the needs of the European market of gas, through comprehensive and proportional supply measures, and continues to meet global demand.
The future of gas
With government policies varying in Asia and Europe, uncertainty increases in the future of LNG. Some European countries believe that relying on gas today and in the near future will only be a transitional stage before converting to carbon-free energy, as opposed to an Asian point of view that improving operating efficiency and reducing operating costs of gas facilities will enhance its role in the future as one of the main fuel sources .
In this regard, CEO of the Italian energy company "Eni" Claudio Descalzi said that the number of producers and consumers has increased during the past ten years, with the signing of more short-term contracts, and here we have tended to control the cost of production and reduce it, because it is the only way to control prices.
Regarding the impact of the gas industry on any possible repercussions due to the trade war between America and China, Descalzi said that liquefied gas can serve the commercial relations between the two countries, and contribute to the stability of the market and the opening of new ones.
As natural gas is likely to meet more than half of the global needs by 2040, according to the International Energy Agency, there are some challenges to the growth of the LNG sector in the world, including the problem of including new sources of supply required in the market, and the challenges of investing in sustainable infrastructure and support Means of production.
In this regard, the Chairman of the Board, CEO of the French company, Total Patrick Bouyane, said that the dynamics of the gas market changed between yesterday and today, and contributed to a positive development in this sector, as well as increasing the linkage of countries to each other.
He talked about major challenges related to supply lines, especially in the eastern Mediterranean region, where signs of tension appear between a number of countries in this extended location, and conflicts that appear on the surface related to gas exploration have become attracted, and their interior is political.
Here, Poyanne said that Turkey is part of the Mediterranean region, and we do not exist there now, except that we have a sea pipeline running through Tunisia, Libya and Egypt towards Europe from multiple sides, and we are holding continuous talks with all parties, because we do not want wars.
The environmental dimension
At a time when pressures are heating up due to climatic changes, persistent environmental pollution, and efforts to explore environmentally friendly sources, there is a trend towards integrating natural gas as a fossil and renewable energy sources, thereby reducing greenhouse gas emissions and protecting the ecological field.
In this context, the responses focused during the session on minimizing the effects that the use of gas may have in the industrial field, and emphasizing that it is one of the cleanest energies currently available, after the decline in prices reduced dependence on one of the most polluting sources of the environment, which is coal.
A number of European countries have reduced their dependence on nuclear energy, reduced their government support in the field of renewable energies, especially in electricity generation, and directed towards the use of natural gas, within the sustainable and effective systems of low carbon energy.