Accelerating low-carbon gas development hinges on incentivising or mandating long-term offtake to provide demand visibility and revenue certainty, as well as ensuring the buildout of readily available transport and storage infrastructure. The assessment comes from the International Gas Union’s just-published Global Gas Report 2025.
Such measures would help secure financing for projects to reach final investment decision while reducing costs through learning and scale, it notes.
The report also finds that biomethane is “the most promising” low-carbon gas today, growing seven-fold in the last decade. It is backed by mature technologies, drop-in compatibility with existing natural gas infrastructure, and all-round strong prospects.
While momentum is building in carbon capture, utilisation and storage (CCUS), a significant proportion of capacity is in the pre-financing phase, reinforcing the need for clearer regulations, streamlined permitting and more mature carbon markets, the report states. Asia is expected to account for 20% of global CO2 capture capacity by 2040, by which time growth is expected to be driven by blue hydrogen and power generation.
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