Oil and gas services giant Baker Hughes Co sees the need for global liquefied natural gas (LNG) capacity to rise to 800 million tonnes by 2030, more than double current capacity, its chairman said on Monday.
Baker Hughes sees strong prospects for gas in the transition to cleaner energy, with LNG combined with carbon capture and storage helping to reduce the industry’s carbon footprint.
“We’ve taken up our estimate of the required installed base of LNG by 2030 up to 800 million tonnes,” Chairman and Chief Executive Officer Lorenzo Simonelli said at the Platts APPEC 2021 conference.
As of 2020, there was about 345 million tonnes of LNG capacity.
Baker Hughes’ forecast compared with consultants Wood Mackenzie’s forecast that the world will need 250 million tonnes in new LNG supply by 2040.
“We see a steady stream of final investment decisions and projects happening both in North America as well as internationally to really bring on between 100 and 150 million tonnes in the next few years as we go forward,” Simonelli said.
Another potential boost for the oil and gas industry he said could come from demand for non-metallic pipes, which would increase demand for petrochemicals to make those pipes.
“We’re big fans of non-metallic pipes,” Simonelli said.
The main benefits of non-metallic pipes over steel pipes are they are lighter by weight, more durable and do not rust, which Simonelli said would be useful not just for new pipelines but also for installing inner shields to repurpose existing pipelines, as well as for platforms and other construction products.
“We see a wide array where composites from a life-cycle cost perspective are much better than a steel pipe or other metallic pipes, and we’re seeing an increased interest from our customers.”