Natural gas expected to remain large part of energy mix
By Brandon Johnson & Uday Turaga
AUTHOR BIO: Uday Turaga is the founder and CEO of ADI Analytics. Brandon Johnson is a project manager at ADI Analytics. Contact Turaga at: email@example.com.
In July 2020, Warren Buffett’s Berkshire Hathaway announced it will acquire Dominion Energy’s natural gas transmission and storage business for US$9.7 billion. The deal includes natural gas pipelines, storage terminals and a 25% stake in the Cove Point LNG terminal. Warren Buffet once said, “Our favorite holding period is forever”.
While natural gas, like most commodities, won’t be around forever, this deal does show that natural gas might be here for a while. Once thought of as a bridge fuel to renewable energy, natural gas has risen to prominence due to its environmental friendliness, low cost and widespread availability. This deal is yet another example of the growing role that natural gas will play in the energy mix going forward, either as a short- to medium-term bridge fuel or as a long-term backup fuel for renewable power generation.
Resource and supply outpace demand
Natural gas remained abundant in the world as production continued to outpace demand in 2019 and 2020. North America, the Middle East, Asia and Africa are expected to increase gas production moderately through 2025, while Europe and Latin America will experience a decline. Russia will drive production growth in Europe, exporting most of its natural gas via pipelines into Europe and China.
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This story first appeared in the June 2020 issue of COMPRESSORTECH2. We only publish a fraction of our magazine content online, so for more great content, get every issue in your inbox/mailbox and access to our digital archives with a free subscription. Click here for a new subscription or here to renew your current subscription.