$2 trillion investment could convert coal power to natural gas and reduce carbon emissions by 15%

Natural gas has a critical role to play in ensuring energy supplies and tackling climate change, and investment of $2 trillion could convert the world’s coal power to gas, and thereby cut global total carbon emissions by 15 per cent, Majid Jafar, CEO of Crescent Petroleum, the Middle East’s oldest and largest private oil & gas company, told energy executives in London.

Supporting a switch to natural gas, particularly in the developing world, will allow the world time to make the transition to even lower carbon energy sources, enabling a more equitable transition in the developing world, and ensuring balance in the energy trilemma of availability, affordability and sustainability, Jafar said in a keynote speech at the opening of the annual World Energy Capital Assembly, the annual global gathering of energy industry and finance professionals.

“Energy and climate are in fact two sides of the same coin – if we focus only on one and neglect the other, we will fail. And the key role for natural gas as a transition fuel was recognised by the final declaration at COP28 in the UAE last year. Yet while the wealthy nations of the OECD consume half of the world’s natural gas, many developing nations are left far behind and if they cannot access natural gas to support economic growth, they are forced to rely on more dirty fuels, such as coal, to the detriment of the climate at the same time as there is more energy poverty,” said Majid Jafar, who is also Board Managing Director of Dana Gas PJSC, the leading publicly-listed natural gas company in the GCC, and Vice-Chairman of the Crescent Group of companies, headquartered in the UAE.

Jafar pointed out that today, more than 7 billion people in the Global South are demanding the same right to stable energy and prosperity that the 1 billion people in the OECD wealthy nations take for granted. And with eight hundred million people globally still without electricity, and another three billion still using wood for cooking which is harmful to health and for climate change, the need for urgent action is therefore clear, he said.

“By embracing natural gas as a critical transition fuel, we can reduce emissions, improve air quality, and provide reliable energy to all, while enabling the addition of renewable sources. And so create a more resilient and equitable global energy future, one that balances economic growth, energy security, and environmental sustainability,” Jafar added.