January 12, 2024 [Hellenic Shipping News]- Nearly every major region is boosting investments in the infrastructure needed to increase the use of natural gas in power generation, despite global efforts to transition energy systems away from fossil fuels.
Globally, more than $720 billion is to be spent on gas pipelines under construction or planned, and an additional $190 billion is to be put on facilities to handle liquefied natural gas (LNG) imports, according to Global Energy Monitor (GEM).
The investment sums involved – which have been committed to projects that are underway or are planned for the near future – reveal the powerful momentum that remains in traditional fossil fuel industries even as clean energy supplies are deployed at an accelerating rate.
Once completed, the pipelines and LNG import terminals will extend the use of natural gas for years to come, and guarantee that fossil fuels will retain a critical role in key power systems well beyond 2030.
WIDE SPAN FOR PIPELINE CAPEX
The geographic spread of natural gas pipelines is currently heavily concentrated in North America and Europe, which account for over 60% of the global pipeline network.
But the planned capital expenditure on future pipelines has a more global reach.
Six regions each have a share of 10% or more of the global expenditure total on gas pipelines already in construction or planned soon: North America, East Asia, South Asia, Sub-Saharan Africa, Eastern Europe and Latin America, GEM data shows.
North America tops the list in terms of expenditure on current or planned projects at $106.4 billion.
East Asia, which includes China, Japan, South Korea and Taiwan, comes in a close second with roughly $102 billion.
South Asia, Sub-Saharan Africa and Eastern Europe each plan to spend more than $70 billion on gas pipelines, signifying substantial commitments to expanding natural gas use across several key economies.
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