Monday, September 25, 2023

With return of coal-fired power, natural gas more important now than ever

Must Read


Russia’s war on Ukraine has forced the return of coal-fired power projects, enabling European countries to weather the energy storm as the Putin-led administration chokes its natural gas supply. And with winter on the way, this seems like the most viable option.

This return to coal-fired power, however, underscores the vital importance of natural gas in the global energy transition. It is filling the role as a bridge fuel to allow for renewable energy sources to come into play.

Countries like Guyana – a newcomer in the oil and gas arena – is opting to walk this path with the introduction of gas projects.

Climate change: President Ali implores UN to act with urgency to protect humanity | OilNOW

Guyana’s position remains firm – it will use natural gas as the springboard to achieve 100% renewables. Its President, Dr. Mohamed Irfaan Ali, urged that countries like Guyana “not be punished” for being new entrants to the fossil fuel industry, in a passionate address to the United Nation’s 77th General Assembly.

“We all recognise that there is a climate crisis. We must go back to some of the decisions. For example, at COP26, we agreed – no more coal-fired power projects – what is the reality,” he asked.

Coal-fired generation, according to the US Energy Information Administration, is now expected to be a key energy component due largely in part to global spin-off effects of the war.

Making a case for gas, Ali underscored that it remains a necessity in the global energy transition. He said there needs to be a balanced approach – something Guyana must be a part of.

Guyana’s oil development will not undermine climate change agenda – President Ali | OilNOW

The Guyanese Head of State had proposed a balancing act for the industry at COP26 – removing subsidies from fossil fuel production and stronger global carbon prices. He indicated that this remains relevant.

Guyana does not have a carbon tax but a US$50 flaring tax to discourage the practice to protect its carbon sink.

The country has only been producing oil for two and a half years. It has a resource count of close to 11 billion barrels of oil equivalent with just two offshore platforms. And its energy transition is in full swing. By 2024, the transformative Gas-to-Energy project will be up and running.

- Advertisement -

Latest News

GYSBI awards 11 technical scholarships out of 300 Guyanese applicants

Guyana Shore Base Inc. (GYSBI) said eleven students drawn from eight regions across Guyana are the inaugural recipients of...

More Articles Like This