Gas instead of coal: Asia and Africa are shifting gears
Across the two continents, the ‘shift’ between the two commodities is becoming increasingly pronounced in order to pursue industrial development that does not lead to an excessive rise in emissions
Gas instead of coal to fuel economic growth and cut emissions. This is the increasingly significant trend taking shape in Africa and, above all, in South-East Asia, with the most ‘booming’ emerging economies turning increasingly to natural gas. Admittedly, the recent surge in global commodity prices caused by the war in the Middle East and the blockade of the Strait of Hormuz is not helping, but the trend is now well established. And it is based on very clear figures and estimates. According to strategic projections by the consultancy firm Wood Mackenzie, for example, demand for natural gas in South-East Asia will exceed that for both oil and coal, coming to account for 30 per cent of the region’s primary energy mix by 2050. At the same time, the total capacity of combined-cycle power stations in the region is set to double, with consumption growth estimated at +3.1 per cent per annum until 2035.
Globally, the International Energy Agency highlights that, for the same amount of electricity generated, natural gas produces around 50 per cent fewer carbon dioxide emissions than coal. At the same time, replacing old coal-fired boilers with state-of-the-art gas turbines enables emerging nations to significantly improve their emissions trajectory without having to ration electricity for businesses and households. Furthermore, thanks to flexibility, modern gas-fired power stations can be switched on, off or adjusted in a matter of minutes to compensate for a sudden drop in wind or sunshine. This enables developing countries to install huge solar and wind farms with complete confidence, knowing that gas is on hand to act as a protective shield to prevent blackouts and ensure a continuous power supply.
Vietnam, India and Malaysia at the forefront
As regards Asia, the analyst consortium Global Energy Monitor points out that leading countries such as the Philippines, Vietnam, Indonesia, Malaysia and Thailand currently have plans to build over 100 GW of new gas-fired electricity capacity, accompanied by as much as 70 million tonnes per year of new LNG import capacity.
Vietnam has become the regional benchmark for long-term energy planning. Through the implementation of its national strategic plan, it has imposed a total ban on the planning of new coal-fired power stations, focusing heavily on natural gas and LNG. The plan aims to reach over 22 GW of gas-fired capacity within the next decade, creating a backbone network capable of supporting the country’s manufacturing boom and, at the same time, integrating a share of renewables amounting to nearly 40 per cent of the national energy mix.
India, on the other hand, has launched a massive incentive scheme worth 375 billion rupees (almost 4 billion dollars) focused entirely on the ‘gasification’ of coal. Instead of burning the solid fuel in the traditional way, India transforms it through chemical processes into syngas (syngas): a process that reduces direct emissions and provides a much cleaner and more efficient fuel for the industrial giants of the steel, cement and chemical sectors.
