Natural Gas is Still a Dirty Word, But It’s Here to Stay: WoodMac
Natural gas will play a critical role in the global energy transition, serving as a bridge fuel between coal and renewables, according to a new report from Wood Mackenzie. Despite concerns over emissions and affordability, gas is expected to remain a key part of the energy mix for decades, particularly in power generation, industrial processes, and transport. According to WoodMac, natural gas demand has surged 80% over the last 25 years, now accounting for nearly a quarter of global energy consumption. While electrification and renewables are expanding, they alone won’t be enough to meet rising global energy demand, especially in Asia and Europe. Gas provides flexibility, reliability, and a lower-carbon alternative to coal, which still powers 30% of the world’s energy needs. In Southeast Asia, countries like Vietnam, Indonesia, Malaysia, and the Philippines are expected to add up to 180 GW of new gas-fired power by 2050 to support economic growth. In China and India, natural gas demand is projected to rise 95 bcm by 2050, offering a practical path to reducing coal dependency. However, high LNG prices remain a key barrier to further adoption. Without a carbon price of $100/tonne, coal could remain the more attractive option for many Asian markets. Beyond power generation, natural gas is also enabling low-carbon technologies, including carbon capture and storage (CCS) and blue hydrogen. While green hydrogen remains too expensive for large-scale deployment, blue hydrogen—produced from natural gas with CCS—will help drive early adoption. WoodMac forecasts 40 Mt of blue hydrogen capacity by 2050. However, the report warns that gas is still a “dirty” word in climate discussions due to methane emissions and its fossil fuel status. Addressing LNG supply chain emissions and scaling up low-carbon alternatives like biomethane and e-methane will be critical to securing its long-term role. WoodMac argues that governments must balance net-zero goals with energy security, ensuring that gas remains a viable option if renewables and emerging technologies fail to scale fast enough. With the next wave of LNG supply expected in 2026, market dynamics could shift, making gas more affordable and reinforcing its position as an essential transition fuel.
India has lowest petroleum prices in the world, says Union Minister
Union Petroleum Minister Hardeep Singh Puri asserted that petroleum prices in India were the lowest in the world. The petroleum prices had come down in ‘absolute and real terms’ in the country, he said. The Minister was in the city to address a meeting on Budget with intellectuals and businessmen, on Friday. Addressing a press conference, Mr. Puri said that more oil was coming from the U.S., Brazil, Guyana, Suriname and Canada in the western hemisphere, while hinting at a price drop. ‘‘There is no shortage of oil. The number of India’s oil suppliers has already gone up from 27 to 40. And if more oil comes in, this is something that we welcome. Hopefully, the prices will come down,’‘ he said. The Minister, however, was quick to add that the government did not benefit from petroleum. The government, instead, had to give ₹220 billion to the oil companies. ‘‘In fact, petroleum prices have come down during the last three years. While a negative growth of -0.67% was witnessed with regard to petrol price, the diesel price increased marginally by 1.15%,’‘ he said. Referring to the Indian economy, the Union Minister said that India was part of the “Fragile Five” (a group of countries that were considered to be overly reliant on foreign investment for economic growth) when Narendra Modi became the Prime Minister in 2014. ‘‘The Indian economy developed significantly under his rule. It was the 10th largest economy then. India’s place improved and the country made strident steps since then: from 10th largest economy to the fifth largest and to the fourth largest. India will soon achieve a 4-trillion dollar economy,’‘ he said, adding, by 2027 India would become the third largest economy.
Good if we get Russian crude, but no major concern if we don’t: BPCL Director (Refineries) Sanjay Khanna
Fuel retailer Bharat Petroleum Corporation (BPCL) does not expect any disruption in supply of Russian crude to have significantly impact its profitability or crude supply security since discounts on Russian crude have shrunk considerably and there are numerous oil supply sources available, according to BPCL’s director (refineries) SANJAY KHANNA. As for its planned greenfield coastal refinery project in Andhra Pradesh, BPCL is open to taking on international oil majors as partners. A decision on this front is expected only when there is a “certain level of clarity” about this project. In an interview with SUKALP SHARMA, Khanna talks about oil imports and energy security, BPCL’s expansion plans, decarbonisation, and its energy transition and evolution path.