LNG’s role in the energy transition: creating a thriving and long-term market in meeting the energy trilemma
Introduction
The insatiable appetite for LNG volumes and the associated price volatility have transformed the global LNG market landscape. While this surge in supply, led by the US and Qatar, will ensure LNG availability and affordability through the second half of the decade, additional supply will still be needed. Disruptions such as the recent pause on US LNG project approvals, sanctions on Russian LNG, and the rising challenges in financing new supply could significantly tighten the market by 2030 as the energy transition accelerates. Geopolitical events, high inflation, and supply chain disruptions have added to the uncertainty.
The energy industry has shifted from considering LNG as a transition fuel on the path to net-zero emissions to a fundamental part of low-carbon solutions. LNG’s flexibility in power generation, industrial use, and as a transportation fuel makes it essential for energy security whilst also being a futureproof infrastructure asset, which can accommodate diversified renewable energy sources supporting the energy transition.
Audience insight
LNG will continue to play a crucial role in the transition to a low-carbon economy. How will LNG adapt and align with global energy goals while addressing the multifaceted challenges of the energy trilemma for the many decades to come?