The role of natural gas in the energy transition is critical and must be supported, as gas remains the ideal transition fuel to a low carbon economy, Vivek Chandra, the CEO of Texas LNG said on Tuesday.
In his speech during Europe’s largest and most influential meeting place for the global gas industry, the Flame energy congress in Amsterdam, Chandra said that an increase in gas usage in the energy mix is a proven and realistic way to dramatically reduce carbon emissions.
He, therefore, urged the gas industry to focus efforts on further reducing the carbon emissions in the gas value chain, as “increasing gas in the energy mix has allowed many countries to reduce their carbon footprint dramatically.'
Chandra cited the UK as an example of a country that has seen a 40% drop in its total carbon emissions over the past 40 years at the same time that it has steadily increased its usage of natural gas, subsequently dropping the share of coal from 80% to less than 10%.
'The share of gas in the mix increased from zero to 50%. In the same period, the UK's total carbon emissions have dropped by 40% while the size of the economy has expanded dramatically,' he said.
The US, likewise, has seen a change in its energy mix over the past 50 years and has steadily increased natural gas consumption, which has reduced its carbon emissions.
'In the last 15 years, the share of coal in the electricity generation energy mix has dramatically reduced. US carbon emissions rose steadily up to around 2005. Since then, carbon emissions have dropped dramatically, coinciding with the increased use of natural gas and the decreased use of coal,' Chandra explained.
With the current, extremely tight gas market, Chandra expects that the recent price volatility will be a sign of things to come.
'Demand is expected to continue for the foreseeable future. Supply, outside of a few places, is constrained by reserves, domestic requirements and reluctance to invest in supply projects because of the demonization of natural gas,' he said.
Texas LNG is an LNG facility that will be constructed at the Port of Brownsville in South Texas, close to the US - Mexico border and the mouth of the Gulf of Mexico to export LNG to global markets.
The facility will have a permitted production capacity of 4 million tonnes per annum (MTA) with two trains each producing 2 MTA.
By Murat Temizer in Amsterdam