Natural gas is a fossil fuel with the lowest environmental impact of all those used. Not only from the extraction, but also in its processing and transportation.
This is due to the smaller amount of combustion waste and its purity when used in more efficient electricity generation technologies.
It is a fuel option for vehicles, which improves air quality in urban centers. In short, it reduces the emission of highly polluting gases, such as carbon monoxide and carbon dioxide .
Natural gas in Latin America and the Caribbean
Historically, natural gas has been an important fuel for economic and social development. The region has large reserves of natural gas located in Brazil (32%), Mexico (26%), Argentina (9.2%), and Colombia (5.8%) approximately.
In addition, the consumption of this fuel has grown significantly in recent years, 30% in 2020 respectively.
Natural gas opportunities in Latin America and the Caribbean
Natural gas offers a series of opportunities as a strategic resource to obtain income or to promote foreign investments. But above all for Latin America and the Caribbean in their transition towards low-carbon economies. As part of a global scenario towards forms of sustainable energy with low environmental impact.
Reduction of greenhouse gas emissions
Natural gas produces fewer greenhouse gas emissions than other fossil fuels . Which has its impact on climate change.
Greater energy security
Natural gas is a relatively safe and reliable fuel. Which is a viable option to reduce dependence on imported fuels.
Economic development
Natural gas extraction projects represent an option to boost economic growth and job creation in the region.
Challenges of natural gas exploitation in Latin America and the Caribbean
The extraction of natural gas as an energy alternative also presents some challenges for Latin America and the Caribbean.
Hence, in order for natural gas projects to play a more important role in the energy transition of Latin America and the Caribbean , the region has to face the following challenges.
Measures to reduce methane emissions
Methane is a greenhouse gas even more powerful than carbon dioxide. The natural gas industry must take steps to reduce methane emissions in the process.
Which implies developing and adopting a series of practices that allow reducing methane emissions . Furthermore, with the support of the governments of these initiatives. With adequate policies and regulations.
Environmental impact
The extraction and transportation of natural gas can have a negative environmental impact. Which implies the development of more sustainable practices. In this context, it is necessary to promote the use of natural gas in energy-intensive sectors.
Natural gas represents a more sustainable option than other fossil fuels in energy-intensive sectors , such as electricity generation and industry in the tertiary sector. Governments must promote the use of natural gas in these sectors.
Investment and Cost
Natural gas is a relatively expensive fuel. So, it is essential to develop government policies to reduce the cost of natural gas and make it more accessible to everyone.
It is necessary to encourage investment in infrastructure for the extraction of natural gas . The region needs to invest in natural gas infrastructure to fully realize the potential of this fuel. Governments must create a favorable environment for infrastructure investment in natural gas extraction.
Potential of natural gas extraction
Natural gas extraction has the potential to become an important fuel in the transition to low-carbon economies in Latin America and the Caribbean.
However, it is essential to address the challenges in natural gas extraction projects so that this fuel can contribute significantly to the sustainable development of the region.
Scenarios for natural gas extraction in Latin America and the Caribbean
The White Paper “Natural gas in the transition towards low-carbon economies: the case of Latin America and the Caribbean” of the Latin American Energy Organization (OLADE), the International Energy Agency (IEA) and the International Natural Gas Association Liquefied (GIIGNL).
In a strategic approach, based on the role of critical drivers, it presents in summary three scenarios of natural gas growth for the region:
Reference scenario
In this scenario, natural gas consumption in Latin America and the Caribbean grows at an annual rate of 2.5% until 2050.
Transition scenario
In this scenario, natural gas consumption in Latin America and the Caribbean grows at an annual rate of 2.0% until 2050. Where natural gas is increasingly used to decarbonize the electricity sector and transportation.
Accelerated decarbonization scenario
In this scenario, natural gas consumption in Latin America and the Caribbean grows at an annual rate of 1.5% until 2050. Where natural gas is mainly used for electricity generation and cargo transportation activity.
The future of natural gas
According to this report, The White Paper “Natural gas in the transition towards low-carbon economies: the case of Latin America and the Caribbean” of the Latin American Energy Organization (OLADE), the International Energy Agency (IEA) and the Association International Liquefied Natural Gas (GIIGNL), highlights the uncertainty of energy.
Even though there is a clear need to transition towards a low-carbon energy scheme. Above all, because it is not possible to predict the maturation of the technologies necessary for the integration of alternative energy.
In the context of increasing demand for alternative energy, there will surely be advantages for the development of low-carbon gases, such as biogas, bioethanol, hydrogen and natural gas with CCUS.
The White Paper concludes with the premise that natural gas has the potential to play an important role in the energy transition of Latin America and the Caribbean.
However, it is important to address the challenges that the natural gas extraction industry brings so that this fuel can contribute significantly to the sustainable development of the region.
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