Global Leaders Support Nat Gas in the Future Energy Mix
Fri, June 03, 2022
As the world’s energy crisis continues, consumers and global leaders are recognizing the critical role of natural gas in ensuring energy security. Recently, the Pew Research Center found that 74% of Americans recognize that the United States mostly relies on sources such as oil and natural gas to meet demand. The report also found that 61% of Americans say they would favor the United States expanding production to export large amounts of natural gas to countries experiencing energy poverty.
Acknowledging liquified natural gas (LNG) as a key investment in the global economy, policy leaders around the world are providing their support. Texans have also offered their aid by quickly increasing production in the Permian, providing a reliable and efficient energy source to those in need. While the U.S. remains a leading exporter of LNG, several countries have echoed the need for continued use of natural gas:
In France, Engie SA, a leading utility provider, announced their agreement to buy LNG from NextDecade Corp.’s proposed export terminal in Texas. Under the deal, Engie will purchase an annual 1.75 million metric tons of the super-chilled fuel produced at the Rio Grande LNG export project for 15 years. Matt Schatzman, NextDecade chief executive, said that the deal showed the company could “help meet our buyers’ climate change initiatives, while providing them access to secure energy supply.”
Prime Minister of Canada, Justin Trudeau, highlighted the strengths of natural gas in the energy transition while supporting global markets. "We're looking to be good partners on energy with our European friends but we're never slowing down in our fight against climate change," Trudeau said.
In Argentina, economy minister Martin Guzman is looking to attract $10 billion in private investment to help the nation jumpstart exports of LNG by 2027. "We are working with a group of countries and companies to ensure that if Argentina generates LNG production capacity, then there will be demand for it," said Guzman.
In a joint statement with the Biden administration, Prime Minister Kishida of Japan emphasized the significant role U.S. LNG plays in alleviating global supply constraints and welcomed investment by U.S. industry to increase oil and natural gas production.
Chancellor Rishi Sunak of the United Kingdom recognizes the need for more production to protect energy security as much as possible for consumers: "Right now, what I believe is the right thing to do is to encourage these companies to invest so that we have more energy security and support the economy.”
In Senegal, President Macky Sall supports fossil fuel production, stating that ceasing financial support for the industry would deal a “fatal blow” to the country. "Just as several African countries are preparing to exploit their significant gas resources, stopping financing for the gas sector on the pretext that gas is a fossil fuel... would deal a fatal blow to our economies as they seek to emerge," Sall told a China-Africa forum meeting outside capital Dakar last year.
Economy Minister Robert Habeck confirms the need for future investment of LNG in Germany. “Today, more than ever, we have to base our energy supply on more robust pillars,” Economy Minister Robert Habeck said in the statement. “Supply security can only be guaranteed in the long term if we think about this alongside the development of infrastructure for LNG.”
Máximo Torero, chief economist at the U.N. Food and Agriculture Organization, voiced concern for European countries attempting to find alternatives for Russian LNG. Natural gas is a critical component for fertilizers that grow crops across the world. “If you switch the energy mix too quickly, you will increase the price of energy,” he said. “Then you will increase the price of fertilizers, you increase the price of food, more people dying of hunger. So what do you want?”
The global energy crunch has a long road ahead towards full recovery. However, as leaders and policymakers around the world have expressed, natural gas is an essential resource in alleviating energy poverty. Through further investments and continued support by global leaders, natural gas can rise to the occasion to meet the world’s need for a clean, reliable energy source.