Lorenzo Simonelli, Chairman and CEO of oilfield services company, Baker Hughes also participated in the session as a speaker.
Expected to play a prominent role in the global energy transition, the versatility of natural gas took center stage during the session, with Knutsson highlighting the resource as a reliable and affordable energy source which enables innovation and energy security for countries and regions that are currently experiencing rampant energy poverty.
“There are a lot of opportunities for gas as part of the energy transition, mainly through replacing coal in the energy and power mix,” Knutsson stated, adding, “We have seen a significant switch from coal to gas in the global power mix, particularly in Africa. We have seen rapid development of renewables come as a result of declining costs and gas will continue to play an important role.”
Meanwhile, Bromander noted that the transition from hydrocarbons towards renewable energy resources is poised to expediate the production and development of natural gas. As an easy-to-store, low carbon option, natural gas stands out as a good candidate to bridge the power sector and is frequently cited as a driver of the energy transition due to its central role in the development of green hydrogen.
“It is the speed of renewables development that will be the key contributor towards driving demand for natural gas in the near- to long-term,” Bromander stated.
Furthermore, the session featured the participation of the CEO of Baker Hughes, a company that has been undertaking significant approaches in positioning itself towards balancing its shifting portfolio with the energy transition.
As such, Simonelli expressed his optimism towards gas serving as a key enabler of the transition towards renewables, highlighting that natural gas is unlikely to be phased out in the near term and will continue to play an important role in hydrogen production as well as the accelerated deployment of Carbon Capture, Utilization, and Storage technologies.
“The energy transition journey is directly tied to our mission statement,” Simonelli stated, adding that, “We have to make sure that we deploy technology that is available en masse. There is no future where hydrocarbons won’t be utilized, which will require us to come together to solve the eco-trilemma. We see ourselves as a key enabler towards lowering emissions and leading the way to renewables, particularly through the use of natural gas.”
Noted for its important role as a bridging resource within the energy transition, natural gas is poised to contribute to climate targets and serve as a solution towards overcoming technology gaps in hard-to-abate sectors such as heavy industry, steel, cement, and petrochemicals. Furthermore, it was noted during the session that gas holds a significant advantage over coal and will continue to play a key role in heating, cooking, and industrial applications, particularly in the global south.