REW Expert Club: “Granting Constraints International Gas Consumption”
Dubai, United Arab Emirates : A joint conference of the Russian Energy Week (REW) Expert Club and the Iranian Institute for International Energy Studies (MIEI) entitled “Shaping the New Energy Order: Common Benefits and Threats” in Tehran was organized. The general consensus shared by experts attending the event was that the establishment of OPEC+-like market regulations, as well as independent financial and insurance institutions, would result in increased international gas consumption, including in Asian markets.
Experts believe that such organizations may be part of SCO, Shanghai Cooperation Organization or BRICS (Brazil, Russia, India, China, South Africa) whose demand for gas will only increase in the next 20-30 years. However, today they are somewhat constrained by the lack of adequate infrastructure and the availability of free resources on the world market. “It sounds daunting, but creating a long-term relationship between exporters and consumers and establishing an independent environment protected against sanctions or artificial price regulation will accelerate gas investment, production and consumption. This means fewer CO2 emissions,” said Leonid Krutakov, senior lecturer at the Financial University under the Government of the Russian Federation.
sCO and BRICS will contribute more than 40% of the world’s proven gas reserves.
Together, SCO and BRICS bring together the largest number of consumers and producers, he said. “This shows that long-term guarantees for investment, production, consumption, and settlement systems are possible by creating preconditions for a stable market,” said Sergei Kapitonov, gas analyst at the Skoltech Project Center for Energy Transition and ESG. “Moreover, as the number of SCO and BRICS countries grows, their members will constitute more than 40% of the world’s proven gas reserves, which are geographically densely populated.” ,
Global demand for Natural Gas is going to increase by 36%.
Global demand for natural gas will increase by 36 percent, or 1,435 billion cubic meters, by 2050 from 2021 levels, according to a long-term forecast by the Gas Exporting Countries Forum (GECF). Countries in the Asia-Pacific region will lead growth by 2050 (+78%), the Middle East (+60%) and Africa (+152%). According to GECF forecasts, consumption in Latin America will double, while in Europe, on the contrary, it will fall by 37%.
“If the market becomes more predictable for the consumer, the increase figures could increase,” said Alexei Grivach, deputy general director of the National Energy Security Fund. “If the price per thousand cubic meters of gas rises to $2,000-3,000, no one will build an economy on gas consumption.”
By the same indicator, producers face difficulties planning investments in production, processing and transportation infrastructure when market prices may drop to $50-100 per thousand cubic meters, as at the height of the 2020 quarantines But it happened.
Coal reduced hot house gas emissions by about 50%.
As announced by REW Club, there is always an option in the market. Today it is coal that is cheaper and more affordable for the EC countries, which recently closed coal-fired power stations but have increased their production during the energy crisis. However, transitioning from coal to gas would reduce hot house gas emissions by approximately 50% while maintaining the reliability of the electricity supply. Given the nearly fifty-fold ratio of the world’s proven natural gas reserves to production, this raw material will remain attractive to the transport and chemical industries as well as other sectors of the economy.
About REW Club
The REW Club is a discussion forum for the expert community, scientists and the international forum for analysts and management of energy companies Russian Energy Week. The forum, established in 2016 at the initiative of the Ministry of Energy of the Russian Federation, is held annually at the Manezh Central Exhibition Hall in Moscow. In 2022, REW hosted over 70 events, attended by over 270 speakers representing government bodies and leading companies. REW-2022 brought together over 3,000 guests from Russia and 83 other states and territories. The Forum was hosted by the Roscongress Foundation and the Russian Ministry of Energy with support from the Government of Moscow.
