Natural gas investment projections surge to $9 trillion
Investments in global natural gas are projected to soar, nearing $9 trillion by 2050, according to forecasts
The Gas Exporting Countries Forum’s (GECF) Global Gas Outlook 2050 report projects that global natural gas investments will total almost $9 trillion by 2050, with $8.2 trillion directed toward the upstream sector and $740 billion for the midstream sector.
The report shows that global natural gas production is expected to reach 5.3 trillion cubic meters by 2050, up from the current 4 trillion cubic meters.
Realizing this target requires global natural gas investments in the upstream and midstream sectors up to 2050. The Asia-Pacific region and North America will lead these gas investments, followed by Eurasia, Africa, the Middle East, Latin America, and Europe.
Asia Pacific to receive largest share of investments
According to GECF, the Asia Pacific region will receive the most significant portion of global natural gas investments in the upstream sector up to 2050, totaling $2.1 trillion.
The report forecasts that China, Australia, and Indonesia will account for 80% of these regional investments, with China leading the way with $650 billion.
North America is expected to invest $1.6 trillion over the same period, with $677 billion of that amount invested in North America, followed by Canada with $630 billion.
Over the same period, $1.5 trillion is expected to be directed to investments in Eurasia, 70% of which Russia will make.
Africa is set to invest $1.1 trillion in gas production by 2050, 88% of which will be designated for Algeria, Egypt, Mozambique, and Nigeria.
In the Middle East, investments of $1.1 trillion over the same period are anticipated, 87% of which will be targeted at Iran, Qatar, Saudi Arabia, and the United Arab Emirates.
Elsewhere, Latin America and Europe are expected to invest $455 billion and $330 billion, respectively.
$438B to be invested in global natural gas liquefaction infrastructure
Of the $740 billion to be allocated to natural gas midstream investments up to 2050, GECF estimates that $438 billion will be directed to natural gas liquefaction, $230 billion to regasification infrastructure, and the remaining amount to pipelines.
The report says that $203 billion will be invested in the Asia Pacific region by 2050, with 73% allocated to liquefied natural gas and regasification.
In North America, $143 billion will be mainly allocated to LNG infrastructure.
By 2050, $120 billion will be directed at natural gas midstream infrastructure in Africa, the majority of which will be invested in Mozambique, Tanzania, Mauritania, Nigeria, and Senegal.
Midstream infrastructure investments in Eurasia are anticipated to total $102 billion. Russia’s LNG infrastructure expansion and increased investment in pipelines will account for a significant share of these investments.
In the Middle East, $89 billion will be allocated for LNG infrastructure expansion. Around $52 billion will be allocated to midstream infrastructure in Europe, focusing on regasification infrastructure, and up to $33 billion will be assigned to mainly regasification infrastructure in Latin America.
Source: AA
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