Gas Demand Spurs $223-B In New Investments

Europe’s demand for gas is driving $223 billion in new investment to produce the fuel globally during the next decade, according to a new study that casts a spotlight on the region’s broad carbon footprint even as it tries to rein in emissions, John Ainger reported for Bloomberg.

Overall, the fossil fuel industry is set to invest $1 trillion in gas production for Europe through 2033.

Two US liquefied natural gas companies — Venture Global LNG Inc. and Cheniere Energy Inc. — are set to lead spending on new developments going forward, climate activist group Global Witness said in its report, which analyzes data from Rystad Energy.

Industry heavyweights TotalEnergies SE and Equinor ASA are also high on the list.

Overall, the fossil fuel industry is set to invest $1 trillion in gas production for Europe through 2033, it said.

Although gas produces less pollution than other fossil fuels, its projects worldwide are under increasing scrutiny for their effects on climate change, raising questions about which facilities will ultimately get built.

The findings add to indications that Europe’s gas demand is set to continue its upward trajectory — despite efforts to slash emissions — as it rebuilds its energy framework after Russia cut most supplies in the fallout of war in Ukraine.

Europe’s consumption of the fuel is forecast to grow by 3% this year — slightly higher than the global average, though lower than the world-leading 4% rate in Asia, according to the International Energy Agency (IEA).

Europe relies heavily on imported gas from the US and Qatar, the world’s top LNG suppliers. It’s also looking to boost production within its own borders to serve as a bridge during the energy transition.

Germany, the region’s largest economy, is considering support for a massive expansion of its fleet of gas plants, which could ultimately burn hydrogen.

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