Unlocking the decarbonizing potential of gas

I’ve been in China this week talking gas – specifically liquefied natural gas – as Shanghai hosts the LNG 2019 conference. It’s the biggest-ever event of its kind dedicated to LNG and comes at a time when the fuel is growing fast.

That’s an important trend for helping the world get onto a sustainable path. One where more energy helps to raise living standards, and does so with far fewer emissions, to help tackle climate change.

Gas is a vital fuel for solving this dual challenge because it’s affordable, abundant and cleaner-burning than coal in power generation.

The beauty of LNG is that it enables gas to be transported to markets in every corner of the world. So the benefits of gas are no longer constrained by the lengths of the pipelines we can construct. This means we can expand existing markets and open up new ones, just as BP helped to do here in China in 2001 when we were selected to partner in the building of the country’s first LNG import terminal.

Today there are 21 LNG terminals across China, and LNG demand has increased by 40% in a year. That extra gas, with a lot of renewables, is helping clear the skies over China as part of its blue sky policy. And it can help to bring down greenhouse gas emissions, just as it has done in the US and the UK over recent years.

I believe the case for gas is compelling, but as I set out in my speech here on Wednesday (3 April), there are three important steps to help fully unlock its potential to put us on a more sustainable path.

First, we need to switch from coal to gas, especially in Asia, where demand for energy is greatest.

Second, we collectively need to support opportunities for global trade, and find ways to work together to alleviate tensions to allow cleaner energy to flow freely.

And third, we need to make gas, not just better than coal, but, in time, comparable with renewables in terms of sustainability. Decarbonizing the gas value chain is key to achieving this, and you can read more of my thoughts on how to do this in my speech.

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