• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business

Gas deals beyond 2050 show reality gap on Europe climate goals

2 years ago
in Business, Energy, Features, highlights, Home, home-news, latest News, Markets, Trade
2 min read
0 0
0
44
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Gas deals beyond 2050 show reality gap on Europe climate goals

Two days after the European Union declared it will push for a global phase-out of most fossil fuels well before 2050, Shell Plc signed a 27-year agreement to buy Qatari liquefied natural gas for the Netherlands.

It’s not the first multi-decade deal to tie the bloc to dirty fuels beyond its targeted deadline — just last week France’s TotalEnergies SE signed a similar contract. The agreements highlight the challenge in reconciling the EU’s ambition to reach climate neutrality by 2050 with its need to ensure energy security after last year’s historic crisis.

“Energy companies seem to be betting Europe will need more gas than politicians predict,” said Christian Egenhofer, senior researcher at the Centre for European Policy Studies.

While Europe has made strides in replacing the cheap Russian gas imports that used to power its economy — mostly by buying liquefied versions of the fuel from places like the US or Qatar — jump-starting its transition to cleaner alternatives has proved difficult.

Governments across the region have prioritized expanding renewables after Russia’s invasion of Ukraine underscored Europe’s need for independent sources of energy, which also cause less damage to the environment.

But high borrowing costs and uncertainty about the commercial viability of some technologies have stalled investments and raised questions about the reachability of Europe’s climate goals. The EU has a binding aim to cut greenhouse gases by at least 55% by 2030 from 1990 levels, and produce no net emissions by the middle of the century.

RelatedPosts

GACL Terminates Evatex Revenue Assurance Contract Amid OSP Probe

Cyber Security Authority Flags Rising Mobile Data Scam, Cautions Public

Gov’t Reopens Talks With PayPal to Restore Full Service Access in Ghana

On Monday, the EU endorsed the global phase out of “unabated” fossil fuels, meaning that countries could only burn coal, gas and oil if they use technology to remove the resulting emissions, such as carbon capture and storage. Such methods are currently limited in scale. The condition will form part of its negotiating mandate at this year’s United Nations COP28 climate summit in Dubai.

“Long-term gas supply contracts between producers and market participants do not lock the EU into a natural gas dependence, since they do not necessarily commit the EU to consume it domestically,” said EU energy and climate spokesman Tim McPhie.

Under the two deals signed with Shell, starting in 2026, QatarEnergy will deliver as much as 3.5 million tons of LNG a year to Rotterdam’s Gate import terminal for 27 years. The same amount will flow to France, which made a U-turn on long-term LNG deals last year, when it revived a supply accord with a US producer which it had axed in 2020.

While there are currently no legal limits for private companies to sign long-term agreements, some EU diplomats are concerned that the deals show top buyers see a bright future for gas despite the bloc’s bets on renewables. Other observers say it’s a risk for the companies involved if the transition to cleaner energy proves successful.

“Private investments into fossil gas deliveries beyond mid-century are at risk of becoming stranded,” said Matthias Buck, Director Europe at Agora Energiewende. “Particularly, as there are many questions around the future availability and costs of carbon capture and storage.”

Qatar, meanwhile, is rushing to find customers and leveraging growing fears over energy security to nail down more long-term deals. It has invested tens of billions of dollars to increase output 64% by 2027. While European companies were initially reluctant to sign long-term deals, Shell has bought shares in key Qatari LNG projects, and Italy’s Eni SpA is also a stakeholder. The latter has yet to announce a similar deal.

It’s possible the companies have got the agreements over the line just in time, as the EU is seeking to ban deals for supply of unabated fossil fuels that last beyond 2049. The draft law is being negotiated by member states and the European Parliament, with a decision on its final shape expected before the end of this year.

Other European energy companies rule out locking in such long deals in light of the region’s climate goals. Germany’s Uniper is not prepared to conclude supply contracts running until 2050, according to a spokesperson.

EU policymakers acknowledge that some energy-intensive industries will need fossil fuels for longer and will have to rely on emissions-removal technologies, but stress those should not be used to delay climate action in sectors where effective alternatives are available.

There are signs that European buyers are starting to embrace such alternatives, according to Woodside Energy Group Ltd Chief Executive Officer Meg O’Neill. She said that while long-term gas contracts are still in play, “no one is saying they are not interested in other fuels in the future,” with buyers also asking for hydrogen, ammonia and carbon capture and storage.

Still, the immediate need to secure energy supplies leaves buyers with limited room for maneuver as renewables aren’t yet able to fill the gap, according to Peter Clarke, senior vice president of global LNG at ExxonMobil Corp.

“One lesson I hope we have learned from the current geopolitical crisis is that having adequate energy supply and security to meet supply needs is crucial,” he told the Energy Intelligence Forum in London on Wednesday. “We can’t predict the future, but we can certainly prepare for challenging times.”

Tags: Europe climate goalsGas deals beyond 2050 show reality gap on Europe climate goals
No Result
View All Result

Highlights

Financial Sector Assets up 34.6% in 2024 to GHS 525.59 Billion

Banking Sector Soundness Remains Robust in 2024 Amid Strong Profitability, Adequate Capital Buffers

Sha’Carri Richardson Withdraws from US Trials Following Arrest

From Singuluma to El Kaabi: Can CHAN 2024 Unleash the Next Hat-trick Hero?

Ghana to Welcome King’s Baton Relay on August 8 Ahead of 2026 Commonwealth Games

RMA Demands Public Inquiry into Unibank Collapse, Slams AG’s Decision to Drop Charges

Trending

Features

GACL Terminates Evatex Revenue Assurance Contract Amid OSP Probe

August 2, 2025

GACL Terminates Evatex Revenue Assurance Contract Amid OSP Probe The Ghana Airports Company Limited (GACL) has officially...

Cyber Security Authority Flags Rising Mobile Data Scam, Cautions Public

August 2, 2025

Gov’t Reopens Talks With PayPal to Restore Full Service Access in Ghana

August 2, 2025
Bank of Ghana

Financial Sector Assets up 34.6% in 2024 to GHS 525.59 Billion

August 2, 2025

Banking Sector Soundness Remains Robust in 2024 Amid Strong Profitability, Adequate Capital Buffers

August 2, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.