GECF reveals forecasts for investments needed to cover gas demand

Oil&Gas Materials 15 March 2023 15:33
Trend News Agency
GECF reveals forecasts for investments needed to cover gas demand

BAKU, Azerbaijan, March 15. The volume of investments in upstream and downstream required to cover the global gas demand will rise to $10.5 trillion by 2050, said Mohamed Hamel, Secretary General of the Gas Exporting Countries Forum (GECF), Trend reports.

“In an industry characterized by a production natural decline rate of 4-5 percent per annum, a lack of investment can only lead to higher prices and chaotic energy transitions. This penalises the poorest and the developing world. It risks creating a backlash against the very policies that stifle investment. It also jeopardises the attainment of the UN Sustainable Development Goals and the very battle for mitigating and adapting to climate change,” he said, addressing the 7th Symposium of Algerian Association of the Gas Industry.

Hamel believes that all this is even more crucial for Africa, where 900 million people don’t have access to clean cooking fuels, while 600 million people lack reliable electricity.

“Africa’s population is set to rise from 1.4 to 2.5 billion in 2050. A doubling of the continent’s average GDP per capita by 2050, a rather modest objective, would increase energy demand by around 150 percent,” said GECF’s secretary general.

He pointed out that Africa needs to use its natural resources to mitigate poverty and ensure socio-economic development.

“The right of Africa to develop its vast natural resources shall thus be preserved, and its access to finance and technology shall be facilitated. In this connection, I am proud that since I assumed office, Mozambique joined the GECF – Mozambique started exporting LNG in November of last year and is expected to become the fifth largest LNG exporter in 2040 – and Mauritania has officially applied for membership – Mauritania will start exporting LNG by the end of this year,” said Hamel.