Qatar energy minister says natural gas needed as baseload for 'realistic' energy transition

Qatar's Energy Minister Saad al-Kaabi said July 18 there is the need for "a realistic and resolute energy transition" where natural gas acts as a reliable baseload source in the energy mix "for most nations for decades to come well beyond 2050."

"All of us have a dual responsibility to ensure the development of renewable capacity alongside a robust baseload capability; and to help people realize that emotional calls to cancel hydrocarbons are not only unrealistic but are also detrimental to a realistic transition," Kaabi said, adding that the future should be a robust mix of many energy sources, including hydrocarbons, renewables, nuclear and hydrogen.

"Hydrocarbons are not going to disappear any time in the near future, and we need to manage their extraction and use responsibly," Kaabi said in his online address at the LNG Producer-Consumer Conference in Tokyo.

Kaabi said "it is very concerning" to see economic factors leading to the most ardent environmental advocates burn coal in defiance of supporting cleaner energy and environmental protection.

"This highlights the need for a realistic and resolute energy transition, starting with a solid integration of natural gas in the energy mix of today and tomorrow," Kaabi said. "We strongly believe that gas will be needed as a safer reliable base load in the energy mix for most nations for decades to come well beyond 2050."

Kaabi also called for "a speedy energy transition to consider that the world needs a fair and effective transition with a realistic and stable path," as well as emphasized prioritizing developing countries that need much more energy resources for their growing population.

The lack of upstream investments in the oil and gas sector "remains as an unresolved and unchallenged chronic problem, contributing to greater lack of clarity, volatility, and supply uncertainty," he added, noting that this would likely cause increased instability for every region around the world.

Qatar, meanwhile, has committed to expand its LNG supply capacity with steps to curb greenhouse gas emissions and carbon intensity from the projects.

"By 2029, about 40% of all new global LNG supplies will be provided by Qatar Energy projects," Kaabi said. "These projects will achieve significant reductions in greenhouse gas emissions through carbon capture and sequestration as well as the use of solar energy. In all, we aim to reduce the overall carbon intensity by about 30% compared to previous generation designs."

"These investments are not only part of our commitment to continue to be a reliable global supplier of cleaner energy, but also help our partners to deal with the new trilemma: balancing energy security, affordability, and sustainability."

Qatar, one of the world's top LNG exporters, is set to increase its volumes by 64% via two phases of the North Field expansion project, raising capacity to 126 million mt/year by 2026 from 77 million mt/year. Doha has suggested it could expand its LNG export capacity even further.

North Field is located on the maritime border between Qatar and Iran, where it is called South Pars Field. It is the world's largest non-associated gas field with estimated reserves of 1,810 Tcf.