A $200bn wave of new gas projects could lead to a “climate boom” equivalent to the annual emissions of all the world’s operating coal power plants, according to a report.
Big banks have invested $213bn in plans to build terminals to export and import gas, which is chilled and transported in ocean tankers. But the report warned that there was more harm than good to the coal’s potential.
The report, by the climate group Reclaim Finance, shows a sharp rise in initiatives to boost global gas trade in recent years, driven by the shift from coal to gas in developing countries and Russia’s war on Ukraine, which imports pipelines to Europe. to dry up
It was found that eight liquefied natural gas (LNG) export terminal projects and 99 import terminal projects were completed in the past two years, which increased the world’s export capacity by 7% and the global import capacity by 19%.
In addition, LNG developers plan to build 156 new LNG terminal projects worldwide by 2030, of which 63 are export terminals and 93 are import terminals, according to the report.
He warned that the methane leakage of these terminals could produce an estimated 10 gigatons of greenhouse gas emissions by the end of the decade, or nearly as much as the annual emissions of all the world’s coal plants in operation.
Justine Duclos-Gonda, campaigner for Reclaim Finance, said: “Oil and gas companies are betting on the future of LNG projects, but each of their projects puts the future of the Paris agreement at risk. Banks and investors insist that oil and gas companies support the transition, but instead invest billions of dollars in future air bombs.
The latest findings are expected to fuel growing fears that vulnerable investments in the global gas market could threaten the world’s gas supply due to imminent climate targets.
International Energy The agency warned last month that the global LNG market is trending towards an unprecedented supply of the gas, which would be incompatible with keeping global temperatures from rising above 2.4C (36.32F) above pre-industrial levels.
He warned that world LNG capacity is on track to grow by nearly 50% by 2030, greater than the forecast world gas demand in all three of the agency’s modeling scenarios.
This glut is expected as fossil fuel prices fall, which may encourage greater reliance on cheap gas for renewable energy technology and energy efficiency gains, further putting climate targets in doubt.
The IEA has predicted that the price of imported gas in the EU is expected to rise from a . would precipitate the highest average would be recorded more than $70 (£54) per million British thermal units (MBtu) in 2022 to $6.50 (£5) by the end of the decade, following a boom in gas projects in recent years.
“LNG is a fossil fuel and new projects do not have a part to sustain in transition,” said Duclos-Gonda. “Banks and investors should take care and support LNG developers and new terminals immediately.”
Although the largest banks have set major targets to move to “net zero” banking, the report warned that they have no specific plan on financing LNG projects meaning investments that may exceed climate targets have been granted.