In the pathway toward transformation of the global energy sector from fossil-based to zero-carbon, better known as energy transition, natural gas remains vital not only to ensure affordable energy supplies but also to curb emissions, which have been on an uptrend since 2020.
Oil Minister Javad Owji made the statement while addressing the second Asia Green Growth Partnership Ministerial Meeting in Tokyo, Japan, on Sept. 26, the Oil Ministry’s news portal reported.
“As the Covid-19 pandemic is subsiding around the world, energy demand and prices are soaring and renewables cannot provide adequate supplies. Hence, the value of natural gas is very important in the clean energy transition,” he added.
Owji noted that natural gas is one of the mainstays of global energy at least for the next 10 years, so adopting hostile policies toward countries with abundant gas resources can endanger global energy security and sustainability that are undeniably the main concerns in tackling today’s energy crisis.
According to the minister, switching from the unabated consumption of fossil fuels to renewables cannot happen overnight, as there is a wide gap.
Owji said countries like Iran, which have massive natural gas reserves, can play a key role in bridging the gap between oil and renewable sectors in the energy transition process.
Iran ranks second after Russia, with about 34 trillion cubic meters of gas reserves.
In other words, an immediate call for all-green and renewable energy appears to be impossible due to the huge financial implications and inadequate supportive energy structure. Natural gas is a cleaner energy source option compared to other fossil fuels such as coal, bitumen and diesel.
Best Fit
Natural gas makes the best fit for a sustainable renewable energy transition in any country due to its competitive edge over other fossil fuels such as coal and its ability to aid the integration of renewables.
This source of energy plays a major role in the short- to mid-term transition toward sustainable energy systems.
Besides being a cleaner and more efficient fossil fuel than coal, natural gas is highly flexible such that natural gas peaking combustion turbines has a dynamic ramping ability that can increase or decrease electricity generation within less than an hour, allowing it to respond rapidly to fluctuations on the demand side and adjust to fluctuating power produced from inconsistencies of renewable energy resources such as solar and wind.
One of the main environmental concerns of natural gas power generation is that it produces significant amounts of CO2. However, the CO2 emission could be reduced by substituting conventional natural gas combustion turbines with state-of-the-art advanced natural gas power generation technologies such as natural gas combined cycle plants.
The versatility of natural gas is key to its expected prominent role in the energy transition, serving as an energy source for all sectors, including heating, cooking and industrial applications. When it comes to greenhouse gas emissions, natural gas has a significant advantage over coal, emitting about half the CO2.
This makes it an attractive option for stabilizing the path to renewables while reducing carbon emissions in the short run.
In many countries, nuclear power is being phased out or shelved, creating an additional need for other technologies to provide a reliable baseload. Natural gas, as an easy to store, lower-carbon option, stands out as a good candidate to provide an uninterrupted, flexible energy supply in tandem with intermittent output from wind and solar while storage technologies are scaled up and innovative new energy pathways are explored.
Japanese Oil, Gas Giants
The oil minister also held separate meetings with the heads of Japanese oil, gas and insurance giants, including Inpex Corporation, Fuji Oil Company, Mitsubishi Oil Company, Marubeni Corporation and Nippon Export Investment Insurance to introduce investment potentials in Iran’s energy sector.
“Despite difficulties, including geostrategic challenges and the recent coronavirus pandemic, Iran has made noticeable progress in its energy sector. Relying on domestic human resources, knowhow and investment, we have reached a sustainable production level of 1 billion cubic meters of gas per day,” he said.
According to the minister, almost 95% of the total 82 million population of Iran have access to piped gas.
Iran’s gas industry has made great strides in terms of home-grown technology and completing the value chain, he added.
Owji said long-term forecast for natural gas demand indicates that by 2050, the share of natural gas in the global energy mix will increase from the current 20% to 30%.
Nevertheless, the share is not enough to achieve targets set by the UN’s sustainable development goals and climate change, especially over 30 years.
The 2nd AGGPM was aimed at deepening the discussion on the importance of a balanced energy transition that achieves sustainable economic growth, climate change countermeasures and energy security in the context of the drastically changing global energy situation.
It also presented the steady progress of various public and private sector initiatives based on the "Asian Energy Transition Initiative” (AETI) announced last year, as well as new support measures and projects to accelerate AETI.
