[ad_1]
Natural gas is humanity’s fastest, most effective and efficient option for decarbonizing the planet, both in power generation and transport. I don’t know why our friends at the IDB, the World Bank and other partner and financing institutions in the region are so adamantly refusing to study and support the structuring and financing of natural gas projects.
We see them working hard and busy, doing the impossible, committing only to intermittent and more expensive alternative renewable energy sources (solar and wind). For several years, almost all countries in the region have committed to developing a hydrogen roadmap. Supporting only these initiatives does not make sense for us in this part of the world, at least for now. Here are some reflections so that we can soften our hearts.
A large part of the citizens who inhabit the planet, especially in Latin America, have been indoctrinated with the famous idea of the energy transition. Supposedly it is to change the energy supply, moving to less polluting fuels. What they are not told is that they are intermittent sources of energy (solar and wind) that require backup, which makes their investment expensive and the need to move them to a price that citizens pay. Without support, they cannot guarantee security of continuous supply and competitive costs on a planet increasingly starved of energy.
Therefore, I am certain that the planet will continue to have a large demand for hydrocarbons, primarily natural gas, for decades to come. If the goal is rapid decarbonization, my advice is to accelerate and promote the use of natural gas more vigorously, rather than oppose its production, infrastructure construction and commercialization. On the contrary, this is shooting oneself in the foot, because there is no decarbonization without natural gas. Natural gas is energy transformation.
In the power generation sector, coal, which is the most polluting, must be replaced as quickly as possible with natural gas, which is the least polluting, abundant and highly competitive. All countries should choose this route; however, China and other countries in Asia and Europe continue to bet and increase consumption.
Likewise, if we really want to decarbonize transportation, we can use liquefied natural gas (LNG) on a large or small scale to replace the vast amounts of diesel, fuel oil, and gasoline used in ships, trucks, and other vehicles. But if we continue to promote only hydrogen, ammonia, and other fuels that remain costly and thus environmentally toxic, we will lose time in reducing emissions.
In South America, a new paradigm of competitive gas supply programs is emerging. This gas is currently found in Peru, Argentina and Venezuela. Unfortunately, the Venezuelan dictatorship does not allow transparent private investment to explore and market its huge gas reserves and resources. The country faces a very serious energy shortage crisis. With such a large amount of gas, Venezuela should fully develop and supply the domestic market and export competitive liquefied natural gas to Colombia and Trinidad and Tobago. We wonder why these international cooperation agencies do not promote, stimulate or finance these activities. It is true that it is difficult to operate in Venezuela, but some progress can be made until the regime changes.
The gas reserves, resources and potential of Peru (Camisea and the north of the country) offer a competitive long-term supply of gas to advance the country’s decarbonization. Why not support the construction and financing of gas pipelines to the south and north of the country and promote export infrastructure to Ecuador? This would allow large amounts of petroleum derivatives such as diesel, fuel oil and LPG to be replaced by more abundant, cleaner and competitive natural gas.
Further south, Argentina also has rich reserves of natural gas in conventional reservoirs, primarily in Vaca Muerta (associated oil or free). It can help fill empty gas pipelines and build new gas pipelines needed in the Southern Cone to reach regional markets, replacing coal, diesel, gasoline and LPG. Can’t we decarbonize effectively?
Why not support financing of large-tonnage truck LNG stations in Peru, Chile, and Argentina, leaving diesel and fuel oil behind? Wouldn’t that be an efficient and rapid way to decarbonize? Gas from Vaca Muerta could use existing and future pipelines to cross the mountains and make progress on long-term LNG trucking corridors.
It is difficult to understand the reasons behind the decisions made by the IDB, the World Bank, the European Cooperation and even the CAF itself regarding energy in the 21st century.
Álvaro Ríos Roca, Bolivia’s former hydrocarbons minister, is managing partner at Latin American Gas Energy.
[ad_2]
Source link
