LNG: opportunities and challenges

Liquefied natural gas (LNG) was described at the 19th World LNG Summit as a commercially attractive fuel capable of competing with others in an increasingly commoditised world.

Held in the Portuguese capital for the second year running, the summit, of which Galp was once again a “host-sponsor”, welcomed hundreds of specialists from the sector.
Executives from producers and marketers of natural gas spent four days debating the role and performance of LNG as a major component in the future global energy.

The demand for natural gas is expected to increase over the next ten years, above all in the Asian markets, and will be decisive in reducing emissions of greenhouse gases. For instance, the replacement of coal with natural gas in the production of electricity will enable us to reduce global emissions of CO2 by 15%, even without effecting changes to the automobile fleet. At the opening of the event, Galp´s CEO, Carlos Gomes da Silva, declared that “natural gas is the ideal partner for a new, more sustainable energy matrix”, and forecast that “75% of demand for the product will come from Asia, with around 50% from new importing countries such as Bangladesh, Indonesia, Pakistan, Thailand and Vietnam”.

“The world doesn't just want more energy, but cheaper and cleaner energy too”

Tony Attah, executive director of Nigeria LNG Limited (NLNG), a Nigerian LNG-producing corporation, was one of the guests at this summit and spoke to Energiser, guaranteeing that the interest in this fuel has only just begun: “There are people who say it´s a transition fuel, a kind of stepping stone, but we believe it´s much more than that”, he states, remembering that “the world needs more and more energy. There will be another two billion people on the planet in 2040, a billion in China and a billion in India, and energy consumption is expected to increase by around 20% in relation to current demand”.

Regarded as the cleanest of fossil fuels, this characteristic places LNG among the main sources of primary energy to be taken into account in the coming decades, and it might even compete with renewable energies in the replacement of coal and derivative products. “The world doesn´t just want more energy, but cheaper and cleaner energy too”, says the Nigerian expert. “We know we can replace coal, but coal is cheaper today. In environmental terms, natural gas holds an advantage, but it needs to be priced competitively and remain competitive, that’s the major challenge”, he concludes.

After visiting Portugal in 2017 and 2018, the next World LNG Summit will be hosted in Rome, the Italian capital, in December 2019.