Image
Icon

Directory

IconAccounting & Tax
IconActuaries
IconAdministrators
IconAppraisers & Valuers
IconArbitration Services
IconASIB
IconAssessors & Loss Adjusters
IconAssist and Lifestyle Benefits
IconAssociations & Institutes
IconAuditors
IconBBBEE Consulting and Verification Agencies
IconBroker Acquisition Financing
IconBrokers for Brokers
IconBusiness Process Management
IconBusiness Process Outsourcing
IconCall Centre Outsourcing & Sales
IconCompany Secretarial Services
IconCompliance
IconConsumer Protection
IconCorporate Governance
IconCredit Bureaus
IconDebit Order Collection Facilities
IconDefensive Driver Training
IconEducation and Training
IconEmergency Medical Rescue
IconFAIS
IconFire, Storm, Flood Damage Specialists
IconForensic Investigation Services
IconHuman Resources
IconIndustrial Cleaners
IconInformation Technology and Software Partners
IconInsurance Companies
IconLegal
IconLightning Damage & Surge Protection Specialists
IconNiche Insurance Products
IconOmbud
IconOutbound Sales
IconOutsourcing Companies
IconPolicy Administration
IconPremium Financing
IconPublic Loss Adjustors
IconPublications
IconRating Agencies
IconReference Books & Material
IconRegulatory Authorities
IconRisk Finance
IconRisk Management
IconRisk Surveyors
IconSalvage Operators
IconSpecialized Claims Investigations & Assessing
IconSurveys and Research
IconTraining Courses & Workshops
IconUnderwriting Managers
IconVehicle Accident Management
IconVehicle and Household Risk Inspection Services
IconVehicle Tracking
IconWellness Programs
IconWholesale Brokers
IconZZZZZZ
Image
  Subscribe To »

Natural gas: an oscillation between boom and gloom

Published

2019

Thu

20

Jun

 

The natural gas market is booming and will increase in the medium term, but many factors point to a less promising future.

 

Until recently, natural gas was acclaimed as the "cleanest" of fossil fuels and all indicators point to an increase in demand and production.

However, the market is evolving rapidly, and renewable energy sources are progressively becoming popular and economically viable alternatives to fossil fuels.

Natural gas: – a shining momentum....

According to the International Energy Agency, natural gas has experienced the highest growth rate in consumption of all fossil fuels since 2006. Natural gas demand will continue to grow, mainly due to the increase in demand in Asia, and in particular in China, whose "Blue Sky" policy imposes strict air quality objectives and a mandatory switch from coal to gas.

Gas is recognized as a practical means of producing energy because of its abundance, versatility and lower pollution than other fossil fuels. Compared to coal, natural gas emits 40% less carbon dioxide (CO2), particulate matter (PM2.5), sulphur dioxide (SO2) and nitrogen oxides (NOx). Natural gas is the energy source most often used to complement renewables, such as solar panels and wind farms, which are often intermittent and require fast and reliable backups.

Natural gas is also integrated into industrial processes, particularly as a raw material for petrochemicals, through the ethane route. Natural gas and related liquids account for about 29% of all fossil fuels used in the chemical industry.

...but a hazy future

Although natural gas emits fewer emissions than oil or coal when burned, it is by no means a clean energy source and  will  not reduce the  risk  of  global warming. In  addition, shale gas extraction is highly polluting and requires large quantities of water, and the injection of chemicals into the soil to break up the rock. This fracking technology also pollutes tap water, threatening access to safe drinking water in rural communities.

In addition, renewable energies are now becoming more affordable than natural gas. According to the latest energy cost analysis (LCOE) of the international finance company Lazard, unsubsidized wind energy is already competitive with the cheapest method of producing electricity from natural gas. And it should not be forgotten that natural gas prices are very volatile, adding uncertainty to the decision-making process.

Finally, the use of gas as an adjunct to electricity production from renewable energy sources is probably  in  its  final  stages,  given  the  technological  advances  made  in  electricity  storage. According to the Wood McKenzie design and energy firm, electricity storage capacity in GW/h more than doubled in 2018, increasing by 140%. Car manufacturer Tesla is already testing a battery storage system in Australia linked to the Hornsdale wind farm. Although the technology is still in its infancy, many players and governments are eager to develop their own battery storage

 

champions  like  Sweden's  Northvolt,  which  aims  to  become  the  largest  European  battery manufacturer.

Natural gas still has a bright future ahead of it, but in the longer term its future is more than threatened, leaving room for energies that are better able to contribute to saving the planet.

 
Source: Coface South Africa
 
« Back to previous page Print this page » |
 

Breaking News »

ESG: What do boards need to know?

Environmental, social and governance (ESG) metrics can be hard to measure, but the risks surrounding them are increasing, as governments and citizens exert pressure on business to change their ways for the greater ...
Read More »

  

Covid-19 Vaccine Distribution Risks and Insurance: Q&A with Allianz Specialists

As COVID-19 vaccine distribution rolls out across Africa and the world, insurers of the pharmaceutical industry are in a position to share their experience as to what constitutes a successful and safe distribution ...
Read More »

  

Car insurance for women: Keeping you safe no matter where you are

For today’s woman who owns a car, motor insurance is a must-have. However, there are various issues to keep in mind when you, as a woman, buy cover for your vehicle. The first question to ask is ...
Read More »

  

AUTO & GENERAL’S RELIEF FUND GROWS TO R370 MILLION

Three severe waves of the coronavirus pushed South Africa’s unemployment rate to a record high of 32. 6%. The July unrest only exasperated our unemployment crisis – Employment and Labour Minister, Thulas ...
Read More »

 

More News »

Image

Healthcare »

Image

Investment »

Image

Life »

Image

Retirement »

Image
Image
Image
Image
Image
Image
Image
Image
Image
Image
Image
Image

From The Glossary »

Icon

Adjustable Policy:

An insurance or reinsurance contract where a provisional premium is payable at inception and adjusted after expiry.
More Definitions »

 

Advertise

 

eZine

 

Contact IG

 

Media Pack

 

RSS Feeds

By using this website you agree to the Terms of Use.
Copyright © Insurance Gateway (Pty) Ltd 2004 - 2021. All Rights Reserved.