The transition to a low-carbon future will come at a high cost for the energy industry and no cheap solutions are available, although the gas industry can build on the momentum it is experiencing now to get ready, Equinor ASA Vice President Margrethe Snapa told delegates Sept. 23 at the 13th Annual European Gas & LNG Summit organized by S&P Global Platts in Amsterdam.
"Whatever steps we take it will cost us; it will cost a fortune but there is no alternative," Snapa said. "Even if you look at all electric alternatives, which of course include nuclear etc. ... that also comes at a cost. There is no cheap solution."
Reliance on increasing CO2 emission prices is also not an option, she said. "I do not foresee that we can rely on carbon prices going forward for [carbon capture and storage] to be commercially viable."
However, Snapa said, the gas industry can use the momentum it is experiencing now to help the energy system transition towards a more sustainable future.
"We see a momentum for gas. In 2019, natural gas once again proved its strong position in the market and we also see that gas is winning the battle with coal," she said.
"We can pave the way for gas building on the momentum we see now," Snapa told the audience.
"We believe that achieving this targets without gas is a massive challenge. Gas contributes to 1,500 TWh of flexible energy to Europe [and equals] the current total global electricity production
from wind and solar," she said.
To meet the EU climate targets, Equinor believes the gas industry needs to continue offer an affordable and reliable source of energy but also to work on a three-phase transition where gas will see its role — and its composition — changing through time.
Between 2020 and 2030, gas can help cut the current level of CO2 emissions by 20% by substituting carbon intense fuels in the transport, heating and power sectors. Between 2030 and 2050, a 40% CO2 reduction will be possible by combining gas with electricity from renewables or blending biogas with natural gas. Beyond 2050, natural gas must be completely decarbonized.
Equinor, Snapa said, is already working on pilot projects together with other companies to see how renewables can be supplemented by gas-based hydrogen and carbon capture and storage.
Henry Edwardes-Evans and Silvia Favasuli, who contributed to this article, are reporters with S&P Global Platts. S&P Global Market Intelligence and S&P Global Platts are owned by S&P Global Inc.
