New Energy Crisis Brewing

Fresh energy crises is brewing and this may undermine energy security and climate goals as it would stall the move away from coal.

Investments in production and liquefaction recovered somewhat last year, rising by 23 per cent annually, but growth additions remain well below the 2013-2014 levels, said the IGU, which represents the global gas industry covering over 90 per cent of the global gas market.

“Despite growth and positive sentiments amidst current market events, significant uncertainty around the LNG market’s future trajectory and the role of gas in the energy transition continues to weigh heavily on, and in some cases delay, investment decisions,” IGU said in the report prepared in cooperation with Italian gas grid operator Snam and research firm Rystad Energy.

“This in turn poses significant challenges for several critical aspects, including supply security, industry development predictability, unmet demand, and pricing, among others,” the report’s authors noted.