Gas demand could treble by 2050, gaining traction not just as the world’s cleanest fossil fuel, but also the most economical. The ascent would be driven by technology. Hence this note outlines 200MTpa of potential upside to consensus LNG demand, via de-carbonised power and shipping fuels. LNG demand could thus compound at 8% pa to 800MTpa by 2030, justifying greater investment in unsanctioned LNG projects.
We are positive on the opportunity to de-carbonise gas-fired power generation using next-generation combustion technologies, such as oxy-combustion, which is reviewed in our deep-dive note, ‘Decarbonising Carbon‘. Could the same technology be used in automobiles? It is more difficult. But the world’s largest oil company is nevertheless trying.
We conclude there is strong potential to de-carbonise gas-fired power generation with next-generation combustion technologies. But de-carbonising oil-fired automobiles may be most readily accomplished by electrification, i.e., substituting in smaller, more-specialised electric alternatives.
Source: Hamad, E. Z. & Al-Sadat, W. I. (2013). Apparatus and Method for Oxy-Combustion of Fuels in Internal Combustion Engines. Saudi Aramco Patent WO2013142469A1.
Source 2: Ben-Mansour, H., Habib, M., Jamal, A. (2017). Gas-Assisted Liquid Fuel Oxygen Reactor. Saudi Aramco Patent US2017284661